Yet another company car tax question!!!

trippy

I would be eternally grateful if someone could tell me if I'm right with the tax implications from each option below as it's sooooo confusing...

Stick with company car scheme & keep fuel card
We get taxed @ 40% on the BIK value on the P11d form for car & fuel which is based on the % of the value of the car (and fixed fuel benefit amount)

Get car allowance & keep fuel card
We get taxed 40% on car allowance. We would have to pay 40% tax on the fuel paid for by the card and claim back the business mileage @ 40p per mile for the first 10,000 miles and 25p per mile thereafter.

Get car allowance & ditch fuel card
We get taxed 40% on car allowance.
We pay for all our fuel and claim back business miles from the company @ 14p per mile.

Stick with company car scheme & ditch fuel card
We get taxed @ 40% on the BIK value on the P11d form for car.
We pay for all our fuel and claim back business miles from the company @ 14p per mile.

Even the person at the company doesn't seem to know!!

Thanks!

amf

trippy wrote: »

I would be eternally grateful if someone could tell me if I'm right with the tax implications from each option below as it's sooooo confusing...

Stick with company car scheme & keep fuel card
We get taxed @ 40% on the BIK value on the P11d form for car & fuel which is based on the % of the value of the car (and fixed fuel benefit amount)

Correct if you are liable at the Higher Rate.

Get car allowance & keep fuel card
We get taxed 40% on car allowance. We would have to pay 40% tax on the fuel paid for by the card and claim back the business mileage @ 40p per mile for the first 10,000 miles and 25p per mile thereafter.

Correct again, if you are HR and you are using your own car.

Get car allowance & ditch fuel card
We get taxed 40% on car allowance. Correct if HR
We pay for all our fuel and claim back business miles from the company @ 14p per mile. If using your own car will company not pay at 40p/25p rates?

Stick with company car scheme & ditch fuel card
We get taxed @ 40% on the BIK value on the P11d form for car. Correct if HR
We pay for all our fuel and claim back business miles from the company @ 14p per mile. This depends on engine size - see http://www.hmrc.gov.uk/cars/fuel_company_cars.htm You will escape the fuel benefit if you follow the advice given in the link.

Even the person at the company doesn't seem to know!! I'm not surprised;)

Thanks!

Answers above.

jennifernil

We went with option 3. That way you choose the car you want, not take what is offered.

We value safety first and foremost, then comfort and reliability . So we preferred to choose our car. And you need to consider your family needs, especially if it is your only car.

The mileage just about covered the fuel in our case, and the extra tax relief made up any shortfall.