To those of you with company fuel cards
- Thread starter Vanilla
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I don't know if i'm paying for all of the petrol or all of the tax. There is probably very little difference in it given the percentage of petrol that is tax but I will look into it
I don't know if i'm paying for all of the petrol or all of the tax. There is probably very little difference in it given the percentage of petrol that is tax but I will look into it
its not 40p per litre, its 40p per mile, so you can ignore the breakdown of petrol costs (tax, duty, fuel)
My understanding:
1. Company pays all fuel costs. All fuel costs are added as P11D benefit. It's essentially as if your salary has increased to pay for fuel. As you pay tax on it all, it's essentially you paying for the fuel, not the company.
2. You are then allowed tax relief of 40p/mile for the first 10,000miles, then 25p/mile thereafter. This is irrespective of what the company pays you. e.g. If in a normal situation, you were paid a flat 30p/mile - you would add the benefit of 30p × no of miles to the P11D and then get a deduction for the 40/25p per mile to net off against it.
Ordinarily, if these miles are actually paid by your employer the netting off would happen on the P11D and nothing more would be needed.
In this case, you can claim it after the event by filling in a P87:
http://www.hmrc.gov.uk/forms/p87.pdf
1. Company pays all fuel costs. All fuel costs are added as P11D benefit. It's essentially as if your salary has increased to pay for fuel. As you pay tax on it all, it's essentially you paying for the fuel, not the company.
2. You are then allowed tax relief of 40p/mile for the first 10,000miles, then 25p/mile thereafter. This is irrespective of what the company pays you. e.g. If in a normal situation, you were paid a flat 30p/mile - you would add the benefit of 30p × no of miles to the P11D and then get a deduction for the 40/25p per mile to net off against it.
Ordinarily, if these miles are actually paid by your employer the netting off would happen on the P11D and nothing more would be needed.
In this case, you can claim it after the event by filling in a P87:
http://www.hmrc.gov.uk/forms/p87.pdf
I'm sure you can't claim anything back if your P11D doesn't reflect the actual costs of the fuel. Your fuel card is a taxable perk which is why it appears on your P11D as a figure not related to actual fuel costs. Also you say the car is yours but is the company paying you a monthly allowance for it? ie in lieu of a company car?
Certainly, when I used to have a company fuel card the tax man wouldn't let me claim anything back.
Certainly, when I used to have a company fuel card the tax man wouldn't let me claim anything back.
Was it a company car? The fuel benefit of a company car bears no relation to fuel used.
Money spent on a fuel card in this case would have to be added to the P11D as the value of the fuel used, surely?
Urmm no, the tax on a fuel card is a flat rate and had no relationship with the amount of fuel used or if it was private or business miles, the way it was worked out was different in those day to today but the flat rate is still the same, see here:
http://www.theaa.com/allaboutcars/companycartax/privatefuel_input.jsp?page=privfuel
As I said, and as the link you provide says, that's only applicable to company cars. You can't claim any AMR on company cars. You get a benefit £14,400 × CO2% (for 07/08), as you describe.
Private cars are different. You would be charged on the fuel cost if that's how it's paid as there is no 'fuel benefit', or the company can reimburse you per mile. You can then claim AMR of 40p/mile or 25/mile, as described.
This makes sense as colleagues at work (whom have been through this for years) claim money back both on the Fuel card (p11d charges) AND on the 40p per mile (this used to be wear and tear if I remember correctly?)
Soldato
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You can't have it both ways. You either get claim your mileage at up to 40p per mile for the first 10k and 25p thereafter from your employer through personal expenses if you are using your own car, or they give you a fuel card and pay for your petrol. Depending on the vehicle the first option is probably best as it also allows for wear and tear on your car.
If you have a company car you usually get a fuel card and pay tax on the value of the vehicle relative to it's CO2 emmissions annually. Alternatively you can get a vehicle allowance from your company and are taxed on this as income, and then claim back for the lease.
If you have a company car you usually get a fuel card and pay tax on the value of the vehicle relative to it's CO2 emmissions annually. Alternatively you can get a vehicle allowance from your company and are taxed on this as income, and then claim back for the lease.
It's not as if the fuel is free, ALL of its value has tax and NI paid on it on the P11d. It's just as if the company paid you a higher salary. It's not really having it both ways to then claim the AMR.
The information in this thread is confusing but this is how I understand it...
If you have a fuel card as BIK from your company they must know what car you have to know the CO2 emissions to calculate the BIK. Without that information they have no way of know what your BIK is.
Also the actual fuel cost and mileage you do each year, business or private, has no bearing on the BIK IIRC.
In post #16 you say you also receive a car allowance from your employer. This is surely to cover wear and tear etc.?
Your fuel is paid for by your employer and you get a car allowance, therefore you can't also claim AMR.
This confuses me as well, how come you're paying for petrol and not using the fuel card?
It could be that I'm not understanding the situation so let me know (or just ignore me) if I've read the situation wrong...
If you have a fuel card as BIK from your company they must know what car you have to know the CO2 emissions to calculate the BIK. Without that information they have no way of know what your BIK is.
Also the actual fuel cost and mileage you do each year, business or private, has no bearing on the BIK IIRC.
In post #16 you say you also receive a car allowance from your employer. This is surely to cover wear and tear etc.?
Your fuel is paid for by your employer and you get a car allowance, therefore you can't also claim AMR.
This confuses me as well, how come you're paying for petrol and not using the fuel card?
It could be that I'm not understanding the situation so let me know (or just ignore me) if I've read the situation wrong...
I've just read some posts again and my post above is not 100% correct.
You can claim relief against the business mileage you do, as you're currently paying tax on the business part of the fuel card and car allowance benefit.
Therefore, yes, you can claim AMR relief.
You can claim relief against the business mileage you do, as you're currently paying tax on the business part of the fuel card and car allowance benefit.
Therefore, yes, you can claim AMR relief.
I pay for the petrol using the fuel card. It is paid immediately by the company but is later passed onto me via the P11D.
Looking at the letter I got from the tax man my new code is 131L.
This is my personal allowance (£5435) minus medical insurance (-£476), minus reduction to collect unpaid tax £1060 (apparently this is from last year so they are reducing my code by 2500ish to pay this off ((40%))) and 'other employee benfits' (-£990).
This leaves me on code 131L.
Ah ok, so you're not paying for any fuel then, you're paying tax on the benefit of having your fuel paid for, which is right.
I assume the 'other benefit' is the fuel card and the reason for the unpaid tax is the difference between what you should have paid for the benefit and what you actually paid last year.
The £990 probably represents the lowest benefit whereas your car is likely to be much higher than that due to the CO2 emissions being quite high, so they're collecting the unpaid tax in the following year.