Company Car Tax

Niknaks_2

I have a company car Peugeot 407 2.0 SW. I only use this car for business miles as I have been using my own car at weekends. I have recorded all mileage used in the company car and the places where my appointments were. I have just received a notification from the Inland Revenue that my Tax code has changed to reflect the fact that I have a company car. I thought you only paid tax if you used it for private miles. Can anyone please advise.

My company are also changing my car to a Passat estate in 2 weeks where I will be able to use it for private use. They are also supplying a fuel card. How do I go about only using the fuel card for business miles but paying for any private miles myself. I only do about 15-20 private miles a week and I do not want to end up paying fuel benefit as well.

Please advse

Bean_Counter

As far as I understand, the car benefit would be charged because the car is available for private use, irrespective whether it was or not.

The fuel benefit is different. What some people at our place do if they have low private mileages is that they use the fuel card to fill up with all fuel, but keep a mileage log of all journeys. At the end of every month, they send the log in and payroll deduct an amount from their salary equivalent to the private miles driven at the HMRC fuel only rate. This varies depending on what you are driving, but is in the region of 10p per mile. Hence becuase you are paying for your private fuel, there is no fuel benefit charge.

Best to discuss with the payroll department at your work to make sure it works out correctly.

cosyc

Niknaks wrote: »

I have a company car Peugeot 407 2.0 SW. I only use this car for business miles as I have been using my own car at weekends. I have recorded all mileage used in the company car and the places where my appointments were. I have just received a notification from the Inland Revenue that my Tax code has changed to reflect the fact that I have a company car. I thought you only paid tax if you used it for private miles. Can anyone please advise.

My company are also changing my car to a Passat estate in 2 weeks where I will be able to use it for private use. They are also supplying a fuel card. How do I go about only using the fuel card for business miles but paying for any private miles myself. I only do about 15-20 private miles a week and I do not want to end up paying fuel benefit as well.

Please advse

if you make any journeys from home to your work place and vice versa they are also private miles.

If you've got a company car with fuel, why bother driving your own and putting the added miles on your car.

We got rid of our car and even paying for private miles still a better deal. Newer car, no worries for new tyres, repairs etc. You usually go to France in the car for our hols every year and a few long weekends away. if you have perk you need to make the most of it.

We couldn't run a newish private car at 10p a mile!