wrx

As above what do you have to pay in tax and how do you get charged. I have the option of claiming any milage I do at 14p per mile or use the fuel card and not have to pay for private milage this apparently gets taxed?

Nick

It's nothing to do with a fuel card as such, it's just your company's internal rules that they like their employees to use a fuel card. In theory, it means that the card is only used for fuel for one particular carr, in practise that's not always the case.

If you claim for car expenses, it will be for business trips only (ie not driving to & from your normal place of work).

If your company pays for both your business & private fuel, then you will have to pay tax on the taxable benefit as calculated by the Inland Revenue. The amount is usually taken as a reduced tax code.

Here's a link to the Inland Revenue car tax calculator.
http://www.inlandrevenue.gov.uk/cars...randcfcalc.htm

matt.bowey

My mate has a card that charges all his fuel direct his company......he pays a huge amout of tax for the privilage.......! Its prob only just worth his while as he drives 30 miles to the office each day.......!

If its one of theses cards, then unless you have to commute a long distance, i wouldn't have one.......!

We have comparable saleries; I have no co. car or fuel card, he has both, I take home approx £400-500 more!!!

Nick

The Inland Revenue site isn't working.

Here's a link to the AA fuel tax page:
http://www.theaa.com/allaboutcars/co...?page=privfuel

ProperCharlie

fwiw 14p a mile isn't a lot of cop. Depending on what you drive, this may not even cover the cost of fuel used. I get the full IR allowed milage payment, and once I'm into the 25p part of the year (after i've claimed more than 10,000 miles), I only make a small margin over and above cost of fuel. (Cost of full tank = approx £55 = approx 400 miles = £100 claimed at £0.25/mile so I'm still making something, but wouldn't be at £0.14/mile.)

Bottomfeeder

I have a petrol card, and my company pay for my personal and business miles

They also kindly give £XXX.XX a month car allowance

ThePosh

Car fuel benefit is taxed as £14,400 (iirc) at the taxable value of the car.

So if you have a company WRX and the tax band is 30% (ish) so the benefit in kind will be £4320. You then pay tax on this amount at you tax band (ie @ 40% £1728 pa).

You then need to work out how many miles ou do and the mpg of you car...

assuming 23 mpg average and 87p per litre you will need to do about 10,050 iles to break even.

IMHO, this method actually seems to benefit less fuel efficient cars...

Cheers

Posh