Tax on fuel provided for personal car

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missieamy
missieamy Registered Posts: 13 New contributor 🐸
I've had a question from a client that you may be able to help with.

Client is opting out of company car scheme and will be paid £500 per month car allowance, he is already a high rate tax payer so I advised him he would only receive half of this (40% tax and 10% NI) hope that's right?

In additon he will be provided with a company fuel acar to pay for all compnay and personal fuel but how will the Revenue calculate his Fuel Benefit in Kind as they no longer know what car he is driving as it is his own car not Company?

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  • deanshepherd
    deanshepherd Registered Posts: 1,809 Beyond epic contributor 🧙‍♂️
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    NIC is only 2% on earnings above £817 p/wk.

    There is no car fuel benefit, as such, if you do not have a company car. He will either be taxed on the fuel in full and will have to make a claim for business mileage in his own car or he will have to reimburse the company for private fuel used.

    This usually depends on the policy of the company.
  • missieamy
    missieamy Registered Posts: 13 New contributor 🐸
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    Thanks for the NI info.
    The company are saying he will have a fuel card for personal and business miles and does not have to keep a log of personal miles. There must be a benefit for this surely?
  • deanshepherd
    deanshepherd Registered Posts: 1,809 Beyond epic contributor 🧙‍♂️
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    Yes. Just not a 'car fuel benefit'.

    If no mileage records are being kept then he will be NIC'd on the full cost via the payroll and taxed on the full cost via P11D.
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