fuel card

salary sacrifice

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an employed client is being offered a fuel card under a salary sacrifice scheme

perssnal fuel would be included

TBH, I'm not sure if its possible to do salary sacrifice on a fuel card, can anyone point me in the right direction?

Replies (5)

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By Yossarian
19th Mar 2024 10:23

Do they have a company car? If not, then any private fuel paid on a company fuel card would be treated as 'salary' and subject to income tax, and Class 1 ee's and er's NIC in any case.

Thanks (1)
By Democratus
19th Mar 2024 14:06

I am struggling to make sense of this too.
If the employer can be sure that the fuel paid on the card is not in fact a payroll benefit to be included with the employees taxable pay, then they should P11D it. The employee may just save on the NIC. "IF" being operative.

As an employee they can rely on the employer getting it right when the brown stuff eventually interacts with the rotational cooling device...as an employer I'd be concerned.

Other issues which could be affected spring to mind: NLW/NMW, Pension contributions, benefits /tax credits for the employee, holiday pay calculations ....and possibly many more.

But what do i know!
Maybe the employer has taken advice from a man down the pub who knows a bloke who does it.

Thanks (1)
By Paul Crowley
19th Mar 2024 14:34

Just a week ago I firmly advised a company client NOT to give a fuel card to a new employee. No company car, just a fuel card.

Thanks (3)
By FactChecker
19th Mar 2024 14:44

Whilst in agreement with everyone else - in particular that it's a crazy idea - there's a purely practical bit that puzzles me:

* If no-one knows (in advance) how much private use fuel will be used (let alone the cost of it with fluctuating prices), then how is the amount to be 'salary sacrificed' arrived at?
[Bear in mind that SalSac is a contractual reduction in Salary, not a random series of deductions, and that changes can only be triggered in specific circumstances.]

Thanks (4)
Replying to FactChecker:
By Yossarian
20th Mar 2024 12:13

"We'll knock £2,000 pa off your salary, then you can buy as much private fuel as you like on the card.." Cue the employee straight off to Esso to fill their car, spouse's car, neighbour's car, wheelie bins full of petrol and diesel in the garden shed etc.

Realistically it's not going to work is it.

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