Company car private fuel dilemma...

[Steve in Stoke]

Dave J said:

can anyone direct me to a fuel tax calculator to see if it's worth me having private milage or claim for company mileage
thanks

try this one - http://comcar.co.uk/newcar/companycar/poolresults/...

[Zwoelf]

Dave J said:

can anyone direct me to a fuel tax calculator to see if it's worth me having private milage or claim for company mileage
thanks

The one your employer uses: http://cccfcalculator.hmrc.gov.uk/CCF0.aspx

[Zwoelf]

minghis said:

redgriff500 said:

No you misunderstand - the Co. pay for his personal use fuel and he is taxed on that.

BUT he has a better car for his personal use and feels a bit cheated that he is being taxed for a perk he isn't getting.

Exactly.

And, if I get free fuel does it really matter which car I put it in as I'd be using it anyway, that's the point.

Yes it does matter, because you are taxed for the private use of your company vehicle. It is your choice to own and use another private vehicle, but the option to use the company one for your private use is available to you courtesy of your employer. You choose not to do so.

Give up the company car and all its tax then and solely use your private vehicle? One assumes there's a reason you choose not to do that either.

[Roo]

Zwoelf said:

Yes it does matter, because you are taxed for the private use of your company vehicle. It is your choice to own and use another private vehicle, but the option to use the company one for your private use is available to you courtesy of your employer. You choose not to do so.

Give up the company car and all its tax then and solely use your private vehicle? One assumes there's a reason you choose not to do that either.

He's talking about the BIK he pays for having "free" personal use fuel, which he doesn't use.

This is completely different to the BIK on the car itself.

[Zwoelf]

Roo said:

He's talking about the BIK he pays for having "free" personal use fuel, which he doesn't use.

This is completely different to the BIK on the car itself.

I understand to which tax he is referring, which is why I said ALL its tax above in the context of giving up up the company hack, both Company Car and Fuel Benefit.

He CHOOSES not to use it. It is available to use, that is the basis upon which he is taxed. Same as if he is entitled to drive a company car, is allocated one but sometimes chooses to drive a personal vehicle to work instead. He doesn't get a rebate on the days he didn't use the company car OUT OF CHOICE - because the option to use the company car was always there.

Nothing's stopping him filling up and using the company car for unlimited personal miles (but the Fuel Benefit is calculated on a fixed amount, so the more he does so, the better off he is), apart from a preference about not liking how it drives. One presumes he chose the car though...

Edited by Zwoelf on Monday 6th June 18:17

[minghis]

Zwoelf said:

Roo said:

He's talking about the BIK he pays for having "free" personal use fuel, which he doesn't use.

This is completely different to the BIK on the car itself.

I understand to which tax he is referring, which is why I said ALL its tax above in the context of giving up up the company hack, both Company Car and Fuel Benefit.

He CHOOSES not to use it. It is available to use, that is the basis upon which he is taxed. Same as if he is entitled to drive a company car, is allocated one but sometimes chooses to drive a personal vehicle to work instead. He doesn't get a rebate on the days he didn't use the company car OUT OF CHOICE - because the option to use the company car was always there.

Nothing's stopping him filling up and using the company car for unlimited personal miles (but the Fuel Benefit is calculated on a fixed amount, so the more he does so, the better off he is), apart from a preference about not liking how it drives. One presumes he chose the car though...

Edited by Zwoelf on Monday 6th June 18:17

Didn't choose it, won't get a choice when it's due for change. The issue really isn't the car or how it drives, it's perfectly good but I can't fit my family in it. Therefore all my private miles is done in a different car.


All food for thought - opinions valued - thanks chaps.

[theboss]

How much is the fuel element of BIK?

When comparing the private to business mileage don't forget that commuting to a regular workplace and back is deemed private... so if you're using the car for that purpose then you may be getting your money's worth

[Zwoelf]

theboss said:

How much is the fuel element of BIK?

Depends what the emissions of the car the OP has are and the rate at which he pays Income Tax.

Flat amount of £18,800 x the %age determined by the vehicle's CO2 emissions x %age personal income tax rate.

[minghis]

And of course in reality I'm not bothered about the tax, I pay it anyway. I'm not trying to avoid the tax.

The real point was I'd feel guilty about putting fuel which my employer provides for me for private use into the car I use for my private use, not the car they provide me. The fuel will be used anyway.