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Director's Fuel card...P11D...Gross deduction...fixed contribution...pls help

knowledgeispowerknowledgeispower Just JoinedRegistered Posts: 31
Hi all, hope you cen help me please....

I've got a client who is a director in a large company and would like to add business mileage to his SA.
He's got a fuel card which he uses for both personal and business use, hence they deduct £70 from his GROSS salary every month to contribute to personal use. But his petrol use is on his P11D. Hope this makes sense.
He's got an excel sheet with business and personal mileage which is fine.
This is what his payroll dept said:
"Please note that the cost of your private fuel used in 2015/2016 has been included on your P11d.
The reason for this is that whilst you have had £70 per month deducted through payroll as a fixed contribution, this has been deducted from your gross salary rather than from net salary with the result that no tax has been deducted in the year from the private fuel used.
You should continue to make a claim for use of your private car for business purposes via the SA103 Tax Return in the normal manner."

payroll also said: Don’t forget to mention you get a £70 deduction for the private element

So...do I just enter P11d info in SA as it's given and add business mileage x 45p to his SA as an expense or do I need to do anything with his whole £70 reduction etc...???

many thanks in advance

V

Comments

  • MarieNoelleMarieNoelle Trusted Regular Hampshire/Surrey borderModerator, MAAT, AAT Licensed Accountant Posts: 1,431
    edited January 2017
    What is the amount on the P11D? Is it the total spent on fuel card?
  • MarieNoelleMarieNoelle Trusted Regular Hampshire/Surrey borderModerator, MAAT, AAT Licensed Accountant Posts: 1,431
    mrme89 said:

    It should be total less contribution.

    It's not clear though, it says "Please note that the cost of your private fuel used in 2015/2016 has been included on your P11d"
    mrme89
  • knowledgeispowerknowledgeispower Just Joined Registered Posts: 31
    Thanks everyone.But I'm even more confused now :-)
    So basically he's got a card that he buys petrol with -business and personal- and they deduct £70 every month from his gross salary to contribute towards personal usage. The amount on the P11D is £1592. His business mileage is 1275...

  • MarieNoelleMarieNoelle Trusted Regular Hampshire/Surrey borderModerator, MAAT, AAT Licensed Accountant Posts: 1,431
    edited January 2017
    My assumption is that i don't think the £70 covers all personal fuel, so the employee needs to deduct mileage (573) and the salary deductions (840) leaving the difference of £179 as the taxable amount. Whether this is the correct way to deal with it for NIC is a different matter.

    Edit I am now wondering whether the 840 being the gross amount we need to apply the marginal rate of the taxpayer to find the net amount? Maybe I also need a glass or 10 at this time of night. It's been a long day.
  • BeccaLouJ9BeccaLouJ9 Experienced Mentor DevonFMAAT Posts: 1,022
    Oh my, how can your brain still be working like this in January, when it doesn't have to!!
    :)
    mrme89
  • BeccaLouJ9BeccaLouJ9 Experienced Mentor DevonFMAAT Posts: 1,022
    ... and drinking on a school night? Tut tut! :)
    B x
    mrme89MarieNoelle
  • BeccaLouJ9BeccaLouJ9 Experienced Mentor DevonFMAAT Posts: 1,022
    I'll let you off then

    B x
    mrme89
  • MarieNoelleMarieNoelle Trusted Regular Hampshire/Surrey borderModerator, MAAT, AAT Licensed Accountant Posts: 1,431
    I think we get to the same results as the taxable amount is 179 (rounding). Agree this should have had NIC applied.

    Have a good weekend everyone!
    BeccaLouJ9
  • knowledgeispowerknowledgeispower Just Joined Registered Posts: 31
    Thank you mrme89 - hope you head is better? and thanks MarieNoelle
    so just to confirm instead of him adding more expense to his SA, do i need to add this as more income? eventhou it is taxed on his P11D?
    Does his personal milaege makes any difference as I got hold of it, it's 7786...
    And what is the £70 deduction on his private element - what his payroll dept mentioned?

    thanks again

    V
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