Fuel card reporting ---- difference of opinion
Further to previous posts (on which I got some very useful information) I would like to clarify, in peoples opinion, which is the correct way of treating payments made on a company fuel card for fuel used by an employee for business and private in their own vehicle. (NB The card is part of a company fuel card portfolio whi9ch also includes business vehicles)
1. I believe that there is NO fuel benefit as per the P11d form as the there is no company car.
2. I belive that the amount spent on the fuel card in the tax year would go in box C of the P11d form (ie:- vouchers and cards etc)
3. I understand that the employee will be taxed on the BIK
BUT.....its the NI that seems to be the source of conflicting information.....
Viewpoint 1
Its a B-in-K and Class 1a is due on the P11d amount
or Viewpoint 2
No Class 1a is due BUT the amount paid should be added to the salary of the individual and national insurance BUT NO TAX should be calculated. In this case I assume that the fuel payment is added to the gross, NI worked out and then the same amount deducted from the net so that the NI costs is calcualted.
If viewpoint 2, a further question, although I assume its simply a case of "common sense" prevailing is if you need to put the fuel onto the salary each month, what if you run the wages before the fuel card bill comes in. I assume you simply put the amount on based on what the company pays during the period from last pay day to this pay day!
(NOTE --- I understand that the employee may wish to make a business mileage claim but I believe that the understanding between the employer and employee is "they will sort that out for themselves".)
I'm viewpoint 2...
... indeed since you refer to previous posts, I may just be essentially a repetition, so perhaps not helpful in aiding you determining which advice is correct.
I agree there can be no fuel benefit, and so the fule card is taxable as a credit token, which gets reported in box C of form P11D.
If you take a look at the form P11D itself, you will see that box C is not a Class 1A-able amount.
If you take a look at HMRC's booklet CWG2 (http://www.hmrc.gov.uk/guidance/cwg2.htm), there is a table on pages 85-89 in Chapter 5 that says what should be included in pay for PAYE and NI purposes. At the foot of page 85 it deals with "Credit cards, charge cards and so on" and I think a fuel card is an "and so on". That says that the amounts are included as gross pay when you decide to not seek reimbursement.
Obviously, you can't not seek reimbursement until you know what the bill is, so you can't payroll it before you have the bill, so with a monthly paid employee there's probably a one-months lag.