Company Fuel Card
Discussion
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?
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?
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. 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?
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.
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 faffSounds 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.
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...
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.
He could honestly tell HMRC he had repaid the private fuel, and that was all that mattered.
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