Hi I wondered if the minds of SN could help answer a quesion

I have done many searches of google etc but still cant find a definitive answer as every thread goes on about business mileage so in short here is my situation

I have a Co fuel card - unlimited spend (pure benefit in kind)

I run a privately owned car - Volvo 2.0D V50

I do no or very very little business mileage ( no more than 2000 a year)

I will spend roughly £3700-£4000 diesel in the next 12 month period

Covering roughly 24000 miles commuting and social

Already paying 40% tax on income.

The Big Question is

What will be the tax implications be for me based on my situation above, 40% in the £1 to be in line with my income tax ?


The outcome may determine whether I re enter the Subaru fold

Thanks for any advice offered

 

Your tax code will be hit by the cost of the fuel - say £3700 - so your tax code will reduce from eg 650L to 280L. This will have the effect of you paying 40% tax on the £3700 = £1480. Hence your net income will reduce by £125 a month or thereabouts.

Normally, if you did business mileage, you would be able to claim business miles back to off-set this. However, you don't do any - so you can't claim any back.

My fuel costs for my (privately owned) Lexus are MUCH more than yours, but I do a lot of business miles (I work in sales) and the business miles that I claim back usually more than offset the cost of the fuel - so I have a slight net gain.

Anyway, that's how I think it'll work for you!

DN

 

Thanks Dr No

That's exactly how I thought it would be, just wanted to be sure before going back to a Petrol car, I was thionking of the Leggy 3.0R B-spec, but it drinks fuel, probably not a good move right now, sadly...

Cheers

 

I have the same - own car but a company fuel card (petrol). It's taxed as a cash value on my P11D. The taxable value has always in the past been lower than the actual fuel I purchased (I do save all receipts and check at the end of the year). So in effect I pay less for my fuel with the company fuel card than if I purchased out of my wallet.

I don't think it would matter if I drove a diesel or petrol, it would still be taxed against it's cash value. You may need to check if there are bands where the tax is higher though I spent 3.5k - 4.5k on fuel per year.

Probably this is a small loop hole HMRC haven't spotted yet and will be plugged one day.

 

The Legacy was on my list too but also ruled out for much the same reason. Wasn't interested in the diesel variant before anyone asks

 

Just done the Maths, currently I spend roughly £300 a month on diesel, based on the 40% tax I'll be £180 a month better off which is very useful when all around us prices are rising.

If I went for the Spec B I'd spend roughly £525 a month being taxed £210 leaving me £90 a month better off which would no doubt be gobbled up with servicing.

Sadly I have to be sensible, Dammit



I should have stayed in Oz where the WRX and fuel card were tax free benefits