Payroll advice - Fuel benefit P11D??

kev123
kev123 Registered Posts: 7 Regular contributor ⭐ ? ⭐
Hi,

Sole director driving own car and paying for fuel on company debit card. I thought this may attract a P11D fuel benefit charge but then saw this:

http://www.hmrc.gov.uk/manuals/eimanual/eim25530.htm

Please can someone clarify what the position is?

Thanks in advance.
K.

Comments

  • jenny3549
    jenny3549 Registered Posts: 472
    My understanding is that Fuel Benefit only applies to company cars provided. When an employee (or in this case director) uses their own car then it's all about the AMAPs. Normally they would be paid an allowance per mile however, in this case it is just a fuel card.

    The calculation would be to work out the approved allowance (business miles travelled x approved rate) and compare to the cost of fuel provided. Depending on how many business miles he does versus personal there would either be a charge or relief on the difference.

    That's my understanding anyway - happy to be corrected!
  • deanshepherd
    deanshepherd Registered Posts: 1,809
    jenny3549 wrote: »
    My understanding is that Fuel Benefit only applies to company cars provided.

    Correct.
  • payrollpro
    payrollpro Registered, FMAAT Posts: 427 Dedicated contributor ? ? ?
    Absolutely right that there is no fuel charge but there is on the use of credit. Any personal spending on the company card goes in section C unless there are records to prove the sum was taxed or made good.
  • MarieNoelle
    MarieNoelle Moderator, MAAT, AAT Licensed Accountant Posts: 1,369
    Just out of interest, could this be put down as "disallowed fuel" towards the director's loan and if this doesn't exceed £5,000 then no BIK arises?
  • deanshepherd
    deanshepherd Registered Posts: 1,809
    Yes, and a dispensation can avoid the 'use of credit' issue highlighted by PayrollPro above.
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