Company Cars

confoosed Registered Posts: 38 Regular contributor ⭐
What happens when the employee pays all the fuel on the company car, both business and private mileage? What is the taxable benefit, if any? :confused1:


  • kjg-kj
    kjg-kj Registered Posts: 68 Regular contributor ⭐
    I would say that there is no fuel benefit because he has paid for all private fuel.

    I would also imagine he could claim mileage for the business miles at 0.40p per mile as an allowable expense (however not certain whether this has to be your own car, or whther it applies if you have paid fuel for a company car).
  • will92
    will92 Registered Posts: 1 New contributor 🐸
    Company Cars

    There is no benefit if the employee pays for all of the private fuel. Mileage is only a deductible expense if you are using your own car for business purposes :001_smile:
  • confoosed
    confoosed Registered Posts: 38 Regular contributor ⭐
    So can he not claim any deduction because of paying for business fuel?
    PAMDILL Registered Posts: 721 Epic contributor 🐘
    No, I tried this one personally but HMRC said not a chance, also no chance of a reduction in fuel benefit charge if you put fuel in for your own use at weekends and use company fuel for travel to and from work.
  • Bluewednesday
    Bluewednesday Registered Posts: 1,624 Beyond epic contributor 🧙‍♂️
    What about claiming company car business miles?
  • Bookkeeper1
    Bookkeeper1 Registered Posts: 2 New contributor 🐸
    You can claim a mileage rate is you pay all the fuel on a company car. See the cutting from HMRC website below.

    HOWEVER - they have not told us for our PTC exam - so unless they suddenly give you the "business miles" he travelled in his company car - it is unlikely to be relevant for the exam - but useful info I hope.

    Good luck everyone

    Company cars - advisory fuel rates from 1 July 2008
    These figures give about one month’s notice of the changes and apply to all journeys on or after 1 July 2008 until further notice.

    We have agreed with employers that we should give them one month's notice of a change in advisory fuel rates so that they can amend their systems in good time to implement the new rates. Accordingly we are announcing these new rates in time for implementation on 1 July. However, the recent fuel price increases which justify these AFR changes have happened very rapidly. In these unusual circumstances we are mindful that an implementation date of 1 July might mean that drivers will be incurring higher fuel prices before the new rates become effective. Consequently, where employers are able to do so, HMRC is content for the new rates to be implemented immediately ie from 1 June.

    Engine size

    1400cc or less

    1401cc to 2000cc

    Over 2000cc

    Petrol hybrid cars are treated as petrol cars for this purpose.

    These rates are calculated from the fuel prices in the tables below:
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