Fuel card and personal vehicle

[9244billy]

Hello all

I have been browsing this forum for a while and thought I would pose a few questions.

I have worked for a company for a year from the start I was given a fuel card where I pay for the fuel I use for personal use only.

My Contract states field based and I initially started visiting 10 locations a day.

I'm now office based covering 2 different sites around the m25. My employer has now informed me I have to pay for the fuel I use at a rate of 10p per mile which will be deducted monthly from my salary (my contract itself hasn't been updated to reflect this)

Is that correct as from reading online it stats for company owned vehicles where the vehicle I use for work is my own and is registered in my name.

Hope someone can shed some light on the above

I do recieve a car allowance, fuel card however I have seen that there is also a tax allowance of 45p a mile if someone could shed some light on that also?

[journeymanpro]

Tax allowance is not 45p per mile. That's the max you can be paid free. If your company pays less you can claim the tax on the difference.

[blank]

When you have a fuel card for a private vehicle (i.e. not a company car) then the fuel counts as a cash benefit.

So if the company didn't ask for any payment for your private fuel then the full value of fuel used would be liable for tax.
You would then probably be able to claim tax relief of 45p/25p per mile for your business mileage, which would offset it.

As your company is making you pay the fuel back then the idea is to make it so you're not taxed on it. So the only fuel they're providing is for business use, and you're paying back the private use. I'm assuming the 10p per mile is the government suggested "fuel only" rate for your engine size/type, which seems like a reasonable way of doing it to save working out the actual private fuel cost.

There is possibly something you can do in terms of tax relief assuming they don't pay you anything else per mile of business use. If your fuel wasn't being paid for it would be 45p/25p per mile (rate drops at 10k miles). As they're paying for your fuel I'm not sure you can claim the full 45p but 35p seems logical as it's the full amount minus the fuel amount. You'd have to check this though.

[jonwm]

My current company offer this arrangement, Fuel is charged as a BIK for the year and then you submit business miles into your self assessment and it sorts itself out for there I'm lead to believe from my colleague who used to run a 911 with a fuel card.

[devnull]

jonwm said:

My current company offer this arrangement, Fuel is charged as a BIK for the year and then you submit business miles into your self assessment and it sorts itself out for there I'm lead to believe from my colleague who used to run a 911 with a fuel card.

Pretty much this. Use the car as you need, P11D shows total cost for the year on the fuel card, claim tax relief on the business miles using the 45/25p mechanism.