Company Fuel Car with personal contribution tax implication

Company Fuel Car with personal contribution tax...

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Hi,

I have a employee company cash allowance to purchase a car instead of opting for a company car.

I then receive a fuel card, and opt to a pay a nominal £50 per month towards private fuel, I can therefore use the card for all fuel I consume.

I drive approx 20K business miles and 10k private miles per tax yr.

Is it possible to claim relief, if so, how to i calculate what I can claim back?

TIA.

Replies (3)

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By Democratus
24th Mar 2016 11:42

As far as i am aware No

my emphasis

‘Making good’ fuel provided for private motoring13.10Where the employee is required to make good the cost of all fuel provided for private motoring in a ‘company vehicle’ as described in paragraphs 13.5 or 13.9, they may do so by:(a)payment – that is by paying to the person providing the fuel a sum of money either directly or by deduction from their net salary or wages, or(b)reinstatement – that is by replacing the fuel provided for private use by a corresponding amount of fuel purchased from their own pocket, or(c)any combination of (a) or (b) aboveSee paragraph 13.13 for how HMRC advisory fuel rates can simplify this for company cars.13.11The fuel benefit charge is only reduced in accordance with paragraph 13.5 or13.9 if the employee makes good the cost of all the fuel provided for private motoring. If the employee fails to fully make good in this way, the fuel benefit charge as calculated under paragraphs 13.6 to 13.9 applies without any reduction for the repayments made by the employee.   . You would be better served by your employer if you made good the cost of the private fuel used to avoid any tax charge or just get the private usage allowed and take the whole tax cost depending on the cost of private mileage. 

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By Portia Nina Levin
24th Mar 2016 11:50

The OP states that it is not a company car, and therefore the fuel scale charge (and the lengthy, paragraph lacking, tome above) does not apply.

The employer will be putting whatever is paid on the fuel card, less the £50 per month (and possibly less 45p/25p per mile for the business mileage through the payroll/P11D).

So the first port of call is the employer to see if they deduct the 45p/25p per mile for the business mileage. If not it can be claimed.

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By Democratus
24th Mar 2016 18:08

Oops Portia - you are right

read twice - answer once

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