wrx

My wife gets a car allowance (bought an evo) and a fuel card from her company. Sure I looked on some tax site and worked out shed get charged £1100 flat charge so as long as she was doing more than 6000 personal miles she benefit. She did around 14000 miles most of them personal and has just recieved a P11d form which under fuel card says a cost to you of £2392. So is she going to get chared this or has she already been charged. £2392 seems like the total amount but some of it was business.

Never had a p11d before so no idea what it is or what to do with it.

darren...

A P11D is a form that shows what taxable benefit you've had... You need to check which boxes are filled in but most of them show the taxable benefit - i.e. you will pay your tax rate as if you were paid that much money... HTH

dsmith

For 06/07 ...

So if you know the percentage (of list price) you use to calculate the company car tax on the car...you multiply £14400 with that. That gives you the "taxable benefit" of the fuel card which is shown on the P11D.

£2392 is 16.6% of 14400 which sounds low for an Evo (have you had it for a full year ??)

You pay tax on the amount shown on the P11D as if it were added to your salary. So if you're a top rate tax payer you pay 40% * £2392 = £956.8/yr = £80/month.

All the above assumes she doesnt repay the company for private mileage - Some companies allow you to pay for private miles, avoid the tax liability and simply get the convenience/slightly cheaper fuel benefit.

dsmith

A quick check suggests an Evo is 35%

So 35% x 14400 is £5040 (Taxable benefit for fuel card)

At 22% Tax, .22 * 5040= £1108 / year extra tax (matches your original figure)
At 40% Tax, .40 * 5040= £2016 / year extra tax

So if your wife is on "normal" 22% tax and not 40% then theP11D figure of £2392 (about 6 months??) will cost you in extra tax £526

Neil W

I opted out of the company car scheme and took the car allowance and fuel card. As far as im aware the number on your P11D is the total you have spent on fuel and liable for 40% tax (if your a high tax rate payer).

So if you have spent £1k on fuel, the tax liability is £400. Of course business mileage can be offset against this.

Well this is how im told it works anyway.

VJ_STi

iTrader: (1)

This is assuming that the evo is your own car and NOT a company car what you need to do is contact the tax office and find out how you can offset the amount of business miles you have done. So how it works :-

Your total spend on the card is £2,392 - This should be shown under section E of the P11d

So how it works - Lets say you have done 5,000 business miles you are given an 'tax allowance' iirc 40p/mile so the allowance you get would be 5,000 business miles x £0.40 = £2,000 therefore you will be taxed on the difference £2,392 - £2,000 = £392 taxable benefit @ either 22% or 40% depending on which tax bracket you fall into.

HTH

Very cheap way of running an Evo.

wrx

From the two posts below it looks like there are two ideas on how it is worked out. She has asked her boss but only gets a blank look.

Looking at VJ_STi post

Just worked out that £2392 equates to 11812 miles (at 22MPG and 98 pence a litre for optimax) She has to submit her business milage on a company computer each month so I guess they have worked out that out of the 14000 miles she did in the year, just over 2000 were business miles so 11812 miles are personel hence the taxable benefit of £2392. Or it could just be a coincidence.

Looking at dsmith post I'm sure when she first got the card I looked at some goverment website and worked out the same figures as you that for a year shed be taxed about £1100 flat rate. so as long as shed be using more than that in the year shed benefit (and in a car that does 22 mpg you would only need to be doing more than 5500 miles to benefit.) But that dosn't work out on the P11D form as you say it should be £5040 not £2392 and the fuel card was used on the evo for the full year (April to April)

So either way does that mean she is going to get a tax bill of 22% of £2392 or will they take it out of her pay one month, spread it across the next 12 month's or has she already been paying it each month? Not ever having seen a P11D before I thought she was going to get charged £2392 and had a bit of a shock as she'd only saved £1100 to pay the tax bill.

If it is only 22% then that is £526 fo about 12000 miles in an evo which is damned good.

Leslie

Do they tax Government ministers for the use of ministerial cars?

Les

Chris L

Yep that is right. Any fuel purchased on a fuel card is effectively untaxed income and therefore, if you're a higher rate taxpayer, you are liable to pay 40% of that in tax. This is basically what wrx has outlined. His wife's car isn't a company car - it's a private vehicle used for company purposes.

Normally, if you have a fuel card, companies don't tend to give you a per mile allowance. This means that you can claim the maximum 45p a mile (or whatever it is now - have a look on IR site) that the IR revenue allows you for all business miles on a private vehicle. So you can offset this against your tax liability

You should keep records of your business milage as although you are not asked to submit it with your tax return, the IR could request the info from you to check the figures. In the 5 years I had a fuel card and allowance, they never did check, but it's up to you how honest you are going to be...

Chris