personal tax - car/fuel benefit

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hi there.<BR>I got a bit confused by the car/fuel benefit calculation.<BR><BR>I understand that any moneytary contribution made by employees for private use of the car is deducted from the benefit calculation,fuel benefit applies unless the employee pays for all private use fuel,in other word no deduction made if employees merrly contributes torwards fuel ( e.g £50 per month ) , <BR><BR>I feel confused by the "monertary contribution " ,does it mean contribution towards running costs ? does it running costs exclude fuel costs?<BR><BR>Hopfully my question can sense to anybody<BR><BR>cheers <BR><BR>chaoliss<BR><BR>

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    personal tax - car/fuel benefit

    Hi Chaoliss,<BR><BR>You're absolutely right - the monetary contribution which is deducted from the car benefit is nothing to do with fuel. It is as if the employer says "we will let you use the car for £30 per month." It contributes to all running costs EXCEPT fuel, and would be applicable whether or not the employer paid for private fuel.<BR><BR>If the employer DOES pay for private fuel, contributions from the employee DO NOT reduce the benefit (unless the employee fully reimburses the employer for private fuel, in which case there is no benefit).<BR><BR>Hope that helps,<BR><BR>Andrew Harrington
  • System
    System Posts: 100,534 🤖 Admin 🤖
    personal tax - car/fuel benefit

    Hi Andy<BR>Thank you very much for your help . It does help me a lot.<BR><BR>Thanks again!!<BR><BR>chaoliss

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