Fuel Card & Company cars

leeGrant77 Registered Posts: 29 Regular contributor ⭐ ? ⭐
Hi, This is my first post so go easy.
I just wanted a bit of input on how others are going about fuel cards and company cars.
I have a client with 2 employees & 1 director who have just taken delivery of 3 new vehicles and we're providing fuel cards.
Using xero so we can't payroll benefits as yet so im thinking of using a mileage app to track business and private mileage.
I was looking to deduct the private element from payroll so its effectively paid back, would this still need reporting on the P11d?


  • Neillaw
    Neillaw MAAT, AAT Licensed Accountant Posts: 307 Dedicated contributor ? ? ?
    No it wouldn't need to be put onto P11d as no benefit, however it would be better the other way round.

    Get the employee to pay for fuel and then refund them using HMRC's rates, this would also mean that the only thing you would have on your P11d is the vehicle and not the fuel.

    Then add the fuel when everything is fixed, put the effort onto the employee to claim the correct mileage.
  • leeGrant77
    leeGrant77 Registered Posts: 29 Regular contributor ⭐ ? ⭐
    Ok thanks Neil, i shall look at implementing this.
    As for the fuel costs these are not eligible for VAT reclaim are they?
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