Company Fuel Card

[Sy1441]

Quick question!

I worked for a company where I was issued a fuel card. In other companies I submitted my mileage as I rarely do many if any personal miles so didn't want to incur the BIK tax. This company said they had no administration function for this and I didn't have an option but to pay the BIK.

Is this above board?

[James P]

I think the BIK arises if fuel is available for private use (whether you use it or not) unless the employer requires you to pay back the cost.

[Sy1441]

It was available however I didn't want it. I brought this up with the Finance Director and was told there's no facility in place to log private mileage so you'll need to pay BIK.

[tr7v8]

Just track your mileage and submit to HMRC like we all do. Simples

[SS2.]

At ours, we have an agreed MPG for each vehicle with our guys simply submitting a negative expense each month for their private miles. Would this be acceptable ?

[Sy1441]

tr7v8 said:

Just track your mileage and submit to HMRC like we all do. Simples

So are you saying you submit directly to the HMRC?

All other companies i've worked for deduct the private mileage submitted from your salary each month.

[2 sMoKiN bArReLs]

Sy1441 said:

Quick question!

I worked for a company where I was issued a fuel card. In other companies I submitted my mileage as I rarely do many if any personal miles so didn't want to incur the BIK tax. This company said they had no administration function for this and I didn't have an option but to pay the BIK.

Is this above board?

Yes. This is exactly what we do.

[2 sMoKiN bArReLs]

tr7v8 said:

Just track your mileage and submit to HMRC like we all do. Simples

...and then how does he force the employer to take back the dosh for private miles?

[2 sMoKiN bArReLs]

Unless there is an auditable system the private miles thing for company cars is open to abuse. (and some employees will always push the envelope, spoiling it for the honest majority)

[Sy1441]

So to clarify I could have opted out of any private mileage?

[2 sMoKiN bArReLs]

Sy1441 said:

So to clarify I could have opted out of any private mileage?

Doesn't sound like it.

Sounds to me that the firm can't be doing with the inevitable arse ache. Upside is you can fill up for nowt.

For the 20% tax payer the fuel charge is (on average) about £18 per week, so nothing to get too upset about.

[oop north]

2 sMoKiN bArReLs said:

Doesn't sound like it.

Sounds to me that the firm can't be doing with the inevitable arse ache. Upside is you can fill up for nowt.

For the 20% tax payer the fuel charge is (on average) about £18 per week, so nothing to get too upset about.

£18 per week is £936 pa. With 20% tax that must mean a taxable benefit of £4,680. The bik is a scale value of about £22k x the co2 percentag, implying average 22% (all figures worked out in my head so may be wrong) - so should be pretty good mpg. Highly unlikely said employee is using nearly £400 per month in fuel for private mileage. Therefore the idiotic company doing this is wasting lots of money on tax and NIC cos it cannot be arsed to do some admin - though I agree managing private mileage is a faff

My private mileage is around 1000 per month and in a discovery that is less than £200 per month - and a 22% co2 car would be doing much better than my 27mpg. So someone having "free" fuel is suffering income tax at a very high rate indeed...

[survivalist]

I'm assuming that the fuel card was issued along with a company car? If not, and you get a car allowance instead, the tax rules are completely different.

[2 sMoKiN bArReLs]

survivalist said:

I'm assuming that the fuel card was issued along with a company car? If not, and you get a car allowance instead, the tax rules are completely different.

Good point.

[TwigtheWonderkid]

Friend of mine had this, a compulsory fuel card when he did sod all private mileage. He used to work out his private mileage fuel spend, stick the cash in an envelope and take it into HR once a month. They too said they had no mechanism for dealing with it but he said he didn't care. "Put it towards the xmas party, stick it on the 3.30 at Kempton Pk or put it in a charity box" was his reply.

He could honestly tell HMRC he had repaid the private fuel, and that was all that mattered.