Petrol Card v Millage Allowance

Good evening,

I receive a monetary allowance to buy my own car. 

I also have the choice of having a fuel card or a mileage allowance. 

Can you help me decide / understand what is the best option for me to take? 

I will do around 20k business miles a year.

Thanks


Comments

  • savingwannabe
    savingwannabe Posts: 16,610 Forumite
    First Anniversary First Post
    Hello can anyone help? I don't drive so I wouldn't know. 
    Aiming for a minimal spend 2022
  • milton1970
    milton1970 Posts: 191 Forumite
    First Post Name Dropper First Anniversary Combo Breaker
    My experience would suggest that the rate paid in mileage allowance is usually below the actual cost (although oil price is down resulting in lower petrol costs) add to this that there is usually a tiered rate that results in lower rate above certain mileage 14K from memory.
    If your company pay above the HMRC approved rate it becomes taxable (in part)

    given you are doing 20K pa - go with the fuel card 👍

  • k3lvc
    k3lvc Posts: 4,174 Forumite
    First Anniversary Name Dropper First Post

    given you are doing 20K pa - go with the fuel card 👍

    Depends on the car and it's economy, the mileage allowance, the car purchase allowance and other running costs together with the tax on the fuel card and what the OP's tax rate is. Despite doing a 70/30% split business vs private I've never managed to be in a situation where a fuel card would've been worthwhile in the last 20yrs
  • milton1970
    milton1970 Posts: 191 Forumite
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    Disagree - You should not pay tax on fuel card if only used for business purposes 
    Allowable rates are VERY low 
    Pay for your private fuel
  • k3lvc
    k3lvc Posts: 4,174 Forumite
    First Anniversary Name Dropper First Post
    edited 20 April 2020 at 12:31PM
    Disagree - You should not pay tax on fuel card if only used for business purposes 
    Allowable rates are VERY low 
    Pay for your private fuel
    Did you read the OP - they have an allowance for their own vehicle. Do you want to explain how this works for the OP's situation ? Very different from a company vehicle situation where you can leave it at work and have zero private usage 
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