Company Car fuel benefit

karlito32

Hi, Need advice please,

I have just joined a company and been given a company car to support my role. It is fully expensed and they pay for private fuel.

The issue is that i dont do enough private miles to balance the cost of the tax i have to pay.

I have asked to see if i can pay for my private fuel using the HMRC mileage rate at the end of every month, but my question is:-
1- Do the company have to offer me this?
2- Is there anything that HMRC stipulate that means that i can ask to pay for private miles.


Basically i am paying way too much for a car that i dont do more than 5k private miles per year and i dont even think i will cover this mileage as i have other vehicles in my house hold so want to reduce my tax liability if i can!

Thanks any advise more than welcome
ps. assume it would also by less expensive for my company also on NI payments or something?

Dazed_and_C0nfused

This is really an issue between you and your employer.

All you can do is ask them.

And yes it could well save them NI if there is no taxable benefit.

KingOfSnake

Depending on the car CO2 percentage, it is quite likely that your tax bill on the 'benefit' will vastly exceed the value of free fuel you get. If you 'make good' the full value of the free fuel to your employer by 6th July the benefit is reduced to nil. It also saves them 13.9% Class 1A NIC on the value of the benefit so everyone gains.