Reducing fuel benefit for employees P11d
noodles
Registered Posts: 308 Dedicated contributor 🦉
Help
Can someone please explain what the rules are re reducing fuel benefit. For 2009/10 I entered on an employees P11d that they had a company car and fuel paid etc and they were taxed quite accordingly. It has since been mentioned to me that if the person in question contributes an advisory fuel rate amount he will not have to pay the tax on fuel on P11d. I am now confused, can anyone clarify in detail how it work. I thought that regardless on how much you contribute personally to fuel you get taxed on all of it.
Can someone please explain what the rules are re reducing fuel benefit. For 2009/10 I entered on an employees P11d that they had a company car and fuel paid etc and they were taxed quite accordingly. It has since been mentioned to me that if the person in question contributes an advisory fuel rate amount he will not have to pay the tax on fuel on P11d. I am now confused, can anyone clarify in detail how it work. I thought that regardless on how much you contribute personally to fuel you get taxed on all of it.
0
Comments
-
If the fuel is provided for personal use rather than just business then it doesn't matter if the employee makes a contribution - they still pay the tax on the set amount. It would only make a difference if they repaid ALL private fuel so that only the business amount were paid by the company - at that point there is no taxable benefit for fuel.0
-
But how do you know what the private element is to know whether it is repaid or not, is it just a mileage log. Also, does all the actual fuel bills go onto the ltd company accounts. This is just a small family ltd company and all fuel bills been in accounts so far and vat claimed on these. I am just slightly confused as to why they will get out of paying tax on this when they clearly are using it for private use.0
-
they wont get away with private use they have to pay the tax on in on their p110
-
I have been told by another accountant advising them!! to go to benefits hmrc doc and under 13.5 reducing fuel benefit charges to nil. I think that they can probably get away with not paying tax but need to understand why, it just does not seem right and HMRC just keeps refering me to benefits 408 section 13 - help!!0
-
A previously pointed out.
You cannot reduce a fuel benefit partially you either pay it or you don't. This depends if the company pays for any fuel that is used for private use. The employee either needs to pay for all private fuel from their own funds or they need to keep a mileage log and reimburse the company for ALL private fuel. If there is even so much as a penny of private fuel then the FULL fuel benefit is chargeable!Regards,
Burg0 -
okay so my next question is
1 - Would all fuel receipts go in business and vat get claimed
2 - Is it acceptable that I just put through 16p per mile for private usage as per advisory rates. This is what I am being told to do???0 -
What's this?!!! A serious accounting thread on the Chat boards? "How very dare you". You need to go away and have a good thing about this nscuffell and contemplate your future amongst the riff raff.0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.5K For AAT students
- 328 NEW! Qualifications 2022
- 161 General Qualifications 2022 discussion
- 11 AAT Level 2 Certificate in Accounting
- 57 AAT Level 3 Diploma in Accounting
- 95 AAT Level 4 Diploma in Professional Accounting
- 8.9K For accounting professionals
- 23 coronavirus (Covid-19)
- 273 VAT
- 92 Software
- 275 Tax
- 138 Bookkeeping
- 7.2K General accounting discussion
- 203 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 584 Job postings
- 16 Who can benefit from AAT?
- 36 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership