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Hi, first post so be gentle and I struggled to find an answer by searching various threads. 

I've recently started a new job and have a cash allowance in addition to my salary which I know is taxed at source.  My question is about the fuel card.  My previous knowledge on fuel cards is that they are taxed as a BIK which given the amount of private miles I do won't be cost effective if that is still the case. 

However, payroll have said at the end of the tax year they will inform HMRC how many private miles I've done and I will be taxed at my tax rate (40%) on the cost of those miles.

e.g. I spend £100 total on fuel, £60 is business (60%) and £40 is private (40%) I will then be charged 40% of £40 which is £16 in tax.  Has anyone else ever heard of this or am I going to get stung with a large BIK charge on my P11d making a fuel card not worth it?

Any help welcome, thanks.
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