Fuel card (reimburse fuel) or 40pence per mile

Cavallino

Cavallino

Cavallino

Soldato
Joined
8 Dec 2004
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Location
Hampshire
Ok so my current employers pay for my fuel (private and business but at the end of the year I have to pay fuel tax on private mileage)

However another potential employer doesn't reimburse fuel but pays 40pence per business mile.

Ofcourse the question is, how much mileage I do a month, but I would like to get your opinions on this.

Thanks.
 
[TW]Fox;11501332 said:
If I drove a Mercedes S65 AMG, I would want a fuel card. If I drove a Panda diesel, 40p a mile thanks very much.
Click to expand...

2006 Passat 2.0 TDi

I get around 600 miles out of a full tank (give or take 30-50 miles depending on usage).
Costs around 70-75 quid for a full tank.
 
personally i rip myself off by paying tax each month on a fuel card. It undoubtedly costs me more, but the plus, for me, is that i dont care about forecourt prices, i dont care if i want to drive to scotland and in fact the only annoying thing about fuel, is that i have to physically fill it up so often (gets boring when you do 700 miles a week).

For your situation, of course it depends on how many private miles you do. the 40p per mile, i assume this is to run your own car? generally the government rate is around (loose figures) 13p/mile for ~2.0L car business miles in a company car, and zilch for private miles (tho many employers, mine included which is why i'm ripping myself off) also give you a £1200-taxable "bonus" for private mileage.

If the 40p is for your own car, to drive business miles, then you need to do a lot more maths (leasehire charges etc). if its 40p a mile to drive a company car (i'd be siurprised) then take it - its a great deal.
 
See I didnt mention that it is my own car.
But I get paid car allowance.

Heres the thing. Both employers are paying me car allowance. But the 40p/mile potential employer actually pays £1.2k more car allowance.

At the moment. I have to declare the tax I paid on business mileage to the tax office in order to get it back.
 
only you can really work it out Cav, based n whether you want the better car, more money, a quicker car (use more fuel = fuel card) or a more economical car (40p/mile).
 
If it's your own car, it does not matter whether it's a Fuel Card or not. You can only claim the 25p/40p HMRC rates. This assumes business mileage only and company reimburses the full HMRC rates.



[By concession, the self-employed with turnover below the VAT registration limit can also claim HMRC rates (+ finance interest) instead of the business % of all motor expenses + Capital Allowances.]
 
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