Fuel - Benefit in Kind
Discussion
Hopefully an accountant type can answer a query for me:
I used to work for a company that operated the following system -
You were expected to use your own car for business (car allowance paid).
You were given a fuel card which entitled you to 'free' fuel for the car, both personal and business (with a monthly limit on personal fuel - which was not enforced).
You were taked as a BIK for the value of fuel used, and then you claimed back the business miles in your own tax return.
Are you still able to do this?
I used to work for a company that operated the following system -
You were expected to use your own car for business (car allowance paid).
You were given a fuel card which entitled you to 'free' fuel for the car, both personal and business (with a monthly limit on personal fuel - which was not enforced).
You were taked as a BIK for the value of fuel used, and then you claimed back the business miles in your own tax return.
Are you still able to do this?
I suspect its me thats thick.......
Currently, I drive my own car to work and pay my own fuel.
I spend about £5000 on fuel just to/from work. Obviously, this £5000 is coming out of my salary after deductions etc.
If I have my own car and a company fuel card, I could claim for all fuel, get taxed at source on the value used as a BIK. This £5000 of fuel would therefore only cost me £5000 x 40% (less any business miles), and would be pre-deductions. Obviously the company would be subsidising me, but thats the idea.
Is this right?
Currently, I drive my own car to work and pay my own fuel.
I spend about £5000 on fuel just to/from work. Obviously, this £5000 is coming out of my salary after deductions etc.
If I have my own car and a company fuel card, I could claim for all fuel, get taxed at source on the value used as a BIK. This £5000 of fuel would therefore only cost me £5000 x 40% (less any business miles), and would be pre-deductions. Obviously the company would be subsidising me, but thats the idea.
Is this right?
Eric, thanks for your patience!
Right, i'll try to make sense....
I used to work in a company who had the following system;
all staff (at a certain level) would recieve a lump sum car allowance in their salary, in lieu of a company car.
they would also get a fuel card, which entitled them to charge all fuel used (business and personal) to the company.
at the end of each year (on the P11D), each individual would pay tax on the total value of fuel used in the year, so in effect it is being deducted with your tax code each month.
everybody would then claim back the maximum IR allowance for business miles done in own car in their Self Assessment (40p upto 10000 miles / 25p after that).
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It is my intention to have this system implemented at my new company, the only difference being there is no car allowance paid (all in salary), but i am not sure this is relevant.
-------------
I hope this makes more sense!
Right, i'll try to make sense....
I used to work in a company who had the following system;
all staff (at a certain level) would recieve a lump sum car allowance in their salary, in lieu of a company car.
they would also get a fuel card, which entitled them to charge all fuel used (business and personal) to the company.
at the end of each year (on the P11D), each individual would pay tax on the total value of fuel used in the year, so in effect it is being deducted with your tax code each month.
everybody would then claim back the maximum IR allowance for business miles done in own car in their Self Assessment (40p upto 10000 miles / 25p after that).
-------------
It is my intention to have this system implemented at my new company, the only difference being there is no car allowance paid (all in salary), but i am not sure this is relevant.
-------------
I hope this makes more sense!
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