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  1. #1
    DF Jedi QfanatiQ's Avatar
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    Advice Car Allowance and Fuel Card

    Can anyone help point me to an idiots guide or explain in the simplest terms if
    - The tax I pay on my fuel card all I will ever give to the HMRC
    - How much money I get back once delcaring my bussiness mileage (submitting P11 or P111 if i recall correctly)

    I have read so much I am at a total loss and ot be honest, if I am going to get stung some more then I dont want to declare my bussiness miles. This year has been low, next year likley to be a huge amount more.

    My better half, has a company car and fuel card (although has since given that perk up) and been told, they are expected to pay back the petrol used for private use (still waiting for evidence).

    Cheers.....Q

  2. #2
    DF Jedi Northernbloke's Avatar
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    Default Re: Car Allowance and Fuel Card

    I had a company car and fuel card with my previous employer - we filled in a mileage report and stated the amount of business miles we had driven plus the amount of private miles - the amount of private miles driven was then deducted from our salaries each month (calculated at the HMRC approved milage rate for the car engine size and fuel type - was about 14p a mile for a 2litre (<2000cc) diesel car. There was no tax implication at all that way

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    Thanks to Northernbloke

    QfanatiQ (7th March 2015) 


  3. #3
    DF Jedi QfanatiQ's Avatar
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    Default Re: Car Allowance and Fuel Card

    that explians nicely the missus, anyone with car allowance and fuel card?

    Cheers.....Q

  4. #4
    DF Jedi Hangman's Avatar
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    Default Re: Car Allowance and Fuel Card

    The way it works is as follows: The cost of all the fuel you purchase on the fuel card is seen by the tax man as a taxable benefit. You can either fill in the P11 form or whatever it is or go onto self assessment. At this point you reduce the benefit by anything you paid back to your employer and then claim 45p per mile for the first `10,000 mile and 25p per mile for the rest (for business miles only).

    The first time you do this you should get a nice cheque from the tax man, however what they then do is change your tax code to cover this for future years.
    [Only registered and activated users can see links. ]

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  5. #5
    DF Jedi QfanatiQ's Avatar
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    Default Re: Car Allowance and Fuel Card

    Hangman,
    Thanks for the effort. I think I get it but,

    What do you mean by pay back to employer? and
    This tax year, hardly any Bussiness miles, but next year, I am looking at near a 400% increase.

    Quote Originally Posted by Hangman View Post
    At this point you reduce the benefit by anything you paid back to your employer and then claim 45p per mile for the first `10,000 mile and 25p per mile for the rest (for business miles only).
    Cheers.....Q

  6. #6
    DF Jedi Hangman's Avatar
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    Default Re: Car Allowance and Fuel Card

    I mean if you pay anything to your employer for your private mileage.
    [Only registered and activated users can see links. ]

    Its better to burn out than to fade away...............

  7. #7
    DF Jedi QfanatiQ's Avatar
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    Default Re: Car Allowance and Fuel Card

    As it stands, I do not pay anything to my emploer for provate mileage. I do give the mileage when paying (petrol payment asks, you can say 0, but company asks for this to be provided).

    Is that going to make any difference. My confusion has comefrom the fact, my missus thinks, companies (private or company car) cannot pay for your provate use?

    Cheers.....Q

  8. #8
    DF Jedi Northernbloke's Avatar
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    Default Re: Car Allowance and Fuel Card

    AFAIK if it's a company car you have to pay for private miles - if it's a private car and you get an allowance you don't pay for private miles providing you pay for all the fuel but you can only reclaim the business mileage.

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  9. #9
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    Default Re: Car Allowance and Fuel Card

    Hi
    As Northern bloke says, if you dont pay private miles then you will be hit by massive tax bill (as I was) a year or two down the line, its your responsibility not employers that your P11d (benefit in kind) is declared, I think you will find that its about the same as the tax you pay for company car (it will double). It makes much more sense in long run for you to declare and pay your private miles - then you can be creative with what your actual miles were.
    When filling out the forms please note travel to your first job in the morning from home and travel from your last job at night to home ARE private miles.
    Hope this helps (although probably what you dont want to hear.
    LS
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  10. #10
    DF Jedi Northernbloke's Avatar
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    Default Re: Car Allowance and Fuel Card

    Travel to your first job and home from your last one are NOT private miles providing your employer classes you as "working from home" and provides a letter stating that for HMRC - that's what we had to do as mobile field service engineers who were home based did not have a "local" office

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  11. #11
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    Default Re: Car Allowance and Fuel Card

    Hi
    Thank you for the correction - I had to pay it for many years :-(
    LS
    Dear Lord, please grant me the ability to punch people in the face over Standard TCP/IP

  12. #12
    DF Jedi Northernbloke's Avatar
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    Default Re: Car Allowance and Fuel Card

    They tried to make us pay it when they closed the Durham office claiming Leeds was our new base - quick complaint to HMRC and that was the solution

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