Private Mileage - How is yours deducted?
Discussion
Hello there
Can you help please.....
Up until this month we used to have a fuel card (which was seen as a benefit which we were taxed on accordingly) and we used to have all of our private mileage paid for.
I don't do many private miles at all as I live next door to my in-laws, my parents live a 5 minute walk away and I like to cycle on weekends to keep fit.
Anyway since the 1st August we have had the fuel card removed and we are to pay for the fuel out of our own pocket.
At the end of each month, our sales director will run a GPS tracker report from each car - work out the amount of business miles we have and then pay us back the number of business miles multiplied by the advisory fuel limit set out below in the government link on mileage.
I have an issue with this, first being, that with the government advised/applied MPG of 43.8 my car is nowhere near that figure - its normally about 39 or 40 MPG as I'm a sales rep and the majority of my driving is stop start city centre driving. So I think I'm going to be well out of pocket.
Does anybody else have a set up like this - I would of assumed that at the end of each month be reimbursed in full and just have the private miles deducted from that reimbursement total, so I'm not being penalised for the short fall due to the estimated MPG being so far out, as the majority of the miles is for the company work I do so therefore any shortcomings should be footed by the company and not me.
I drive a Vauxhall Insignia 2 litre ecotec Diesel so pence per mile is 14p according to website link below.
http://www.hmrc.gov.uk/cars/advisory_fuel_current....
I'm being taxed differently now as I don't have a fuel card and no private miles paid for as there is no benefit in kind.
If we have a fuel card and I still pay for my private miles - which myself and my colleagues would rather do and it stops us from pissing abut with credit cards etc. would we still be taxed as having a benefit because we use a fuel card - surely we wouldn't if we have to pay our own private mileage?
Advice would be greatly accepted.
You can have a fuel card and reimburse private mileage and incur no BIK. I have run like this previously. The card provider (Arval) would require you to input your business mileage and your private mileage and will calculate a private mileage cost based on the volume of fuel put in and the cost per litre. This also 'encourgaed' you to use the cheapest diesel. I would simply log my start and finish mileage for the month, log each business trip and subtract the difference for private mileage.
As above really.
We have a fuel card which we use to purchase all fuel and log the mileage. At the end of each month we record our business miles and the rest is classed as personal miles; which is then deducted from our wages. There is no tax for this, as you are paying for your own private fuel (thus not receiving a business perk).
This is the way to go really. GPS tracking and all that sounds like a load of faffing...
We have a fuel card which we use to purchase all fuel and log the mileage. At the end of each month we record our business miles and the rest is classed as personal miles; which is then deducted from our wages. There is no tax for this, as you are paying for your own private fuel (thus not receiving a business perk).
This is the way to go really. GPS tracking and all that sounds like a load of faffing...
Employers can pay an employee up to 45p for each BUSINESS mile undertaken - up to 10,000 business miles
After 10,000 miles, the rate drops to 25p per mile.
If the employer sticks to these levels or pays out at a lower rate, you will not be taxed on the money you get from the employer regarding your mileage claims.
After 10,000 miles, the rate drops to 25p per mile.
If the employer sticks to these levels or pays out at a lower rate, you will not be taxed on the money you get from the employer regarding your mileage claims.
Eric Mc said:
Employers can pay an employee up to 45p for each BUSINESS mile undertaken - up to 10,000 business miles
After 10,000 miles, the rate drops to 25p per mile.
If the employer sticks to these levels or pays out at a lower rate, you will not be taxed on the money you get from the employer regarding your mileage claims.
EricAfter 10,000 miles, the rate drops to 25p per mile.
If the employer sticks to these levels or pays out at a lower rate, you will not be taxed on the money you get from the employer regarding your mileage claims.
The OP is talking about fuel reimbursements when running a COMPANY car so the 45p/25p isn't appropriate here.
D
I get paid 14p per mile for business and it tends to make me money (rather than being out of pocket). Are you really only getting 40mpg from the Insignia? I was given the opportunity to use a fuel card, but opted out after a while (could only use Shell and Total; it was a pain as neither are local).
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