Fuel Card Rules Changed?

Wolfchild · 27 Sep 2008 at 09:36

Ola peeps

Hmm, well for years i have always been charged a -£2880 on my Coding notice for my fuel benefit. A fixed number for years. However this year it has changed to the actual fuel used. So say circa -8k

So basically i'm getting that off my tax free allowance and the remainder i pay tax on! So my tax has shot up dramatically. But most of that fuel used last year is business mileage so why am i getting hit so badly now? Makes it pointless having now as i lost £300 out my wages this month on extra tax due to me working, crazy.

Is there a mistake somewhere?

Confusing i know but i really dont know much about it and our Finance dept are useless!

spoonz · 27 Sep 2008 at 09:57

that seems right to me, you should be taxed on the amount of fuel you use.

I got rid of mine and now claim pence per mile instead of getting raped on tax.

Guv · 27 Sep 2008 at 09:58

The fuel benefit rules did change from 06/04/08. The co2 emissions of the car are now used and a % is applied to £16,900. £16,900 is the same for everyone with a private fuel benefit and the % and your tax rate decide on the tax payable.

What car do you have? do you know the co2 emissions? and what's your tax code?

Wolfchild · 27 Sep 2008 at 10:17

It looks like they are putting all my use down as private though so i'm getting hammered. They have never in the past but used the co2 thingy.

Wish i paid more attention into this at the time.

Its a 330i so 228dioxide planet killers i think. Tax code is now a lovely K210, last month was K498! Got that fixed thankfully.

Guv · 27 Sep 2008 at 10:22

Wolfchild said:
It looks like they are putting all my use down as private though so i'm getting hammered. They have never in the past but used the co2 thingy.

Wish i paid more attention into this at the time.

Its a 330i so 228dioxide planet killers i think. Tax code is now a lovely K210, last month was K498! Got that fixed thankfully.

The benefit should be £5,577 based on those co2 emissions, so you should be taxed £1,115.40 if you're a basic rate payer or £2,230.80 if you're a higher rate tax payer. (Amounts are per year!)

Do you have other benefits? If not I'm not sure how they got to a £8,045 benefit for fuel only.

Unfortunately the benefit of this amount still applies even if your company pay for only 1 mile of private fuel. It's a flat rate. You can get round the benefit by paying them for all your private fuel. Or you can scrap the fuel card, pay for all fuel yourself and your company can repay you at the allowed rates for your business mileage.