car allowance

Because your car allowance is taxed through PAYE it will be included in the income and tax deducted figures from your P60 so you don't have to worry about that bit.

With regards to your fuel card - presumably you use the card to buy fuel for both business and private use? If so then your company should include the value of the fuel you have used on your P11D which you enter on your Tax Return under Benefits and Expenses (either box 1.13 or 1.23 depending on how your company describes the fuel payment. You should then have kept a record of all business mileage completed in the tax year. You can then use the Approved mileage rates available from https://www.inlandrevenue.gov.uk/rates/travel.htm to calculate how much the value of your business mileage was and you enter that in box 1.32.

That way you end up paying tax only on the fuel you used for private purposes.

Clear as mud? :-/

Sorry, cloud-dog is a faster typist than I am! There's your answer. Good luck ;D

Cloud-dog, you can no longer reclaim interest on the loan used to purchase the car. This was abolished from 6 April 2002.  :(

MJSW

As always with tax matters you should check with the IR web site for latest info rather than relying on some wacko's advise

I have a company car, plus fuel card. My company has 'changed' the way the scheme is run on a number of occasions. They are now back with the 'normal' company car scheme but, before this it was the PCV (Personal Contract Vehicle), i.e. you took out the finance agreement and they paid you extra money to cover the finance and (as far as I was aware) this counted as a private vehilce for tax purposes. I'm pretty sure in 2002 I was running a PCV and the tax man allowed me to claim tax relief on the percentage of business miles on the interest of the loan.

Having said all that I am more than willing to accept your info as fact (based on your profession)

cloud_dog

;D A useful tip for those who are paid a mileage rate by their company for use of their privately-owned car:

AMAP (authorised mileage approved payment) rates are set by the Inland Revenue, and indicate the actual cost that the taxman considers it costs you to run a car. From 2002 this has been set at 40p/mile (up to 10,000 miles per annum, then the rate drops) See http://www.inlandrevenue.gov.uk/pdfs/ir124.htm.

If you are paid, say, 25p a mile by your employer, this means that for every business mile that you cover, the taxman considers that you are entitled to have tax relief on the difference (i.e. 15p/mile). I am paid 20.5p/mile, and cover around 3,000 miles a year on business. A simple letter to my tax office setting out the sums gave me an increase in my tax allowance equivalent to
3,000 x 19.5p = £585 (in other words, I can earn an extra £585 free of tax. At standard tax rate of 22%, this equates to £128.70 more cash inyour pocket, but if you are lucky (?) enough to be on the 40% band, it could mean an extra £234.

And if you use your bike for work, keep a record of how many business miles a year you cover - you can claim 20p for each of them against tax!!!

;D ;D ;D ;D ;D