Income tax and fuel benefit query

[toddler]

I currently have a company car and fuel card which I can use for private miles. I’m definitely keeping the car but I’m trying to work out whether to lose the fuel card for the 2017/18 tax year. I do almost no business miles now as the company has shrunk from 3 sites to just the one.

I’m trying to calculate how much I need to spend on fuel each year to make the fuel card worth keeping and I’m hoping someone would be kind enough to check my figures for me.

I’m in Scotland so higher rate (40%) kicks in at £43K, not £45K.

Tax year 2017/18:

Scenario 1 – Keep the fuel card

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Annual salary £33,987
BIK Car £7,293
BIK Fuel £6,554
Taxable income £47,834
£11,500 @ 0% = £0
£31,500 @ 20% = £6,300
£4,834 @ 40% = £1,933
Total tax £8,233

Scenario 2 – Lose the fuel card

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Annual salary £33,987
BIK Car £7,293
BIK Fuel £0
Taxable income £41,280
£11,500 @ 0% = £0
£29,780 @ 20% = £5,956
£0 @ 40% = £0
Total tax £5,956

If I’ve done my sums correctly, I reckon I need to spend more than £2,277 a year on fuel to make it worth keeping the fuel card. Does that sound about right or have I missed something?

[Douglas Arfempty]

toddler said:

If I’ve done my sums correctly, I reckon I need to spend more than £2,277 a year on fuel to make it worth keeping the fuel card. Does that sound about right or have I missed something?

Ditched my fuel card last year as I was looking at similar figures. That's obviously PERSONAL fuel as well, as you'll get your business fuel (11p per mile ish) back from your employer.

With an 8 mile a day commute, there was no way I was putting £200 a month of personal fuel into my 60mpg company car.

[toddler]

Douglas Arfempty said:

toddler said:

If I’ve done my sums correctly, I reckon I need to spend more than £2,277 a year on fuel to make it worth keeping the fuel card. Does that sound about right or have I missed something?

Ditched my fuel card last year as I was looking at similar figures. That's obviously PERSONAL fuel as well, as you'll get your business fuel (11p per mile ish) back from your employer.

With an 8 mile a day commute, there was no way I was putting £200 a month of personal fuel into my 60mpg company car.

To be fair I do almost zero business miles now so it’s pretty much all personal fuel, and my commute is even shorter than yours.

Edited by toddler on Thursday 9th March 13:00