Fuel card but no company car - how is private use taxed?

[texasjohn]

I'm a bit confused.

If you have a company car and fuel card with private use benefit, you get taxed on the car and taxed on the fuel card.

What about if you opt out of the company car, buy your own car but retain a fuel card with private use benefits? Do you still pay tax on the fuel benefit in the same way, i.e. worked out as a percentage of £20,200, such percentage being dependent on the CO2 emissions of your car?

So, driving 600-800 'private' miles a week in a top CO2 band car, would I have a tax code impact equal to 35% of £20,200 per year for the benefit of free fuel, regardless of how much fuel I used each year?

Just seems like a very cheap way to fuel a V8 if I do the sums...

[texasjohn]

Thank you

I think you are right (I posted and then went off and did some searching) see the bottom of this thread...C8PPOs posts...

http://www.pistonheads.com/gassing/topic.asp?h=0&a... card benefits......?

Although I think I might be able to offset the business miles at 45ppm and 25ppm rates as it is a privately owned car.

Maybe a V8 isn't such a good idea after all, however that said, it's an effective 60% off the price of petrol.

Edited by texasjohn on Friday 16th November 20:47

[texasjohn]

There is also a cashflow advantage to this; you pay for no fuel all year then sort the tax out at year end.