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Taxation Fuel card - help me understand

nayr88

Member
Joined
4 Feb 2010
Messages
2,100
Hi all,

I'm hoping someone may be in a similar position and be able to help me understand how this is worked out.
offered a new job with the package as below;

XXk a year salary ( inside 20% tax rate)
3 k car allowance (paid as salary monthly)
Fuel card (Business and private use)

The part that is bugging me is the amount I will pay in tax on the fuel card BIK.

How is this worked out. it's very close to my current employer and so I know I will do roughly £200 a month in fuel in private use.
I don't know how many business miles I will do so can only assume it will be £50 per month.

I will make no contribution to the fuel used.

Do I pay a flat rate per month in additional tax? or at the end of the year, 20% of the value of the fuel used is charged to me as a bill?
The company has told me they will a P11D for me, so It is down to me to issue a self-assessment return for the use of my vehicle for business use and claim back the 45p per x amount of miles as a tax rebate?

the general idea is to work out my monthly take-home....I'm happy to send someone my salary in a private message if they believe they could help work this out.

I've also read this -

Privately owned cars

If you use your own car for work, record keeping is much easier and Fuel Benefit cannot apply. If the company pays for any private fuel, this should be taxed in the same way as salary and subject to both income tax and NI

so 20% of the value of the fuel will be deudcted. so say £250.00 per month is £50.00 in tax plus NI I think is 13.8%? so another £34.50? totalling £84.50 i tax per month? it's so confusing!!!
sorry for the long-windedness of this but I'm really stuck!!!
 
Last edited:

jamila169

Member
Joined
4 Mar 2021
Messages
165
Location
N Derbyshire
this is a company car tax calculator Company car tax calculator 2021 - BIK calculator UK - I always look for an appropriate calculator if i need to work out something HRMC related, the way they work it out is usually complicated and I'm not a tax accountant - you could also get a ballpark by asking a fellow employee who lives a similar distance away and does similar mileage.
ETA here's the multipliers for last year and next year Alphabet Tax Guide for Fleets and the RAC's guide on how to work it out Company Car Fuel Benefit | RAC
 
Last edited:

Wookii

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Joined
13 Nov 2019
Messages
2,171
Location
Nottingham
I believe it depends on the CO2 emissions of the vehicle.

There is a calculator on the HMRC website: http://cccfcalculator.hmrc.gov.uk/CCF0.aspx

Far better for you to forgo any payment for private mileage to prevent the BIK occurring. Is your employer against simple business mileage expense claims? You need to keep a mileage log in either case, so it's no difference in admin from your perspective.
 
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nayr88

Member
Thread starter
Joined
4 Feb 2010
Messages
2,100
this is a company car tax calculator Company car tax calculator 2021 - BIK calculator UK - I always look for an appropriate calculator if i need to work out something HRMC related, the way they work it out is usually complicated and I'm not a tax accountant - you could also get a ballpark by asking a fellow employee who lives a similar distance away and does similar mileage.
ETA here's the multipliers for last year and next year Alphabet Tax Guide for Fleets and the RAC's guide on how to work it out Company Car Fuel Benefit | RAC
Thank you I will give it a try, although many also take into account that you are using a company car and so use the co2 emissions to base this from however with a private vehicle I don't believe this is the case.

get a company van instead of car, tax is worked out on a flat rate :)

I would but it's an allowance and not a vehicle, the tax is only dependant on the vehicle if it is supplied.

I believe it depends on the CO2 emissions of the vehicle. That gives you a percentage to multiply with the HMRC car fuel benefit multiplier, which currently £24,600 for 2021/22.

There is a calculator on the HMRC website: http://cccfcalculator.hmrc.gov.uk/CCF0.aspx

Far better for you to forgo any payment for private mileage to prevent the BIK occurring. Is your employer against simple business mileage expense claims? You need to keep a mileage log in either case, so it's no difference in admin from your perspective.

Correct the co2 emissions do come into it, but I thought this was if a company car is supplied as opposed to the private car.
I have thought about not going for the fuel card but I have heard occasions where you are financially better off with one.

Say you only pay £ 87.50 in additional tax in a month but use £200.00 getting to and from work and also to Tesco and the gym etc well your better off?

I believe the reason for using the fuel card is less administration on their end and less opportunity for fraudulent claims.?
 

Wookii

Member
Joined
13 Nov 2019
Messages
2,171
Location
Nottingham
Correct the co2 emissions do come into it, but I thought this was if a company car is supplied as opposed to the private car.
I have thought about not going for the fuel card but I have heard occasions where you are financially better off with one.

Say you only pay £ 87.50 in additional tax in a month but use £200.00 getting to and from work and also to Tesco and the gym etc well your better off?

I believe the reason for using the fuel card is less administration on their end and less opportunity for fraudulent claims.?

Sorry, yes, I got the wrong end of the stick. The CO2 percentage just applies if the company also supply the car.
 
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