A Question on car allowance and fuel tax????
I am about to start a job whereby i recieve a car allowance and a fuel card....
I need a new car for this job, so am currently looking at either purchasing or leasing a car....
My question is this.....
The car allowance i understand is taxed as a normal earning - i.e. NI & TAX - how is the fuel taxed?? Does it have anything to do with the cars emisions or is it more to do with personal mileage? Also would it be better to buy or to lease the car?
Any pointers would be appricated.
Cheers
Re: A Question on car allowance and fuel tax????
I have a question that I am desperate for some answers for.
My current employers have given us all fuel cards. We all use our own cars as company cars are not provided. We do not get an allowance from the company for depreciation or milage. However, we are under strict guidelines that we only use the fuel cards for business miles only, (which is fair enough) , yet can the Inland Revenue "punish individuals" for using some petrol for personal use?
Can we ask our company to pay us directly for depreciation or milage clocked?
Can the Inland Revenue question/charge the employees should they feel our fuel cards are not being used for business?
What are our entitlements as employees as the rules have not been clearly pointed out?
Any help would be greatly appreciated.
Re: A Question on car allowance and fuel tax????
Not so sure what powers the IR would have - if they did get wind of such things I'd imagine they'd investigate somehow. However it would have to be pretty obvious that the personal mileage is being funded by the fuel card as they'd have no idea on fuel economy etc- you could just have a heavy foot on the pedal.
However I would really question how your company meets its duty of care for employees when driving their own vehicles. They have no idea as to the condition of them and whether they are maintained correctly (especially if they feel they're not going to finance and maintenance items). If someone has an incident that comes down to a poorly maintained vehicle, then the company will be liable and Directors could face jail if it leads to a death.
Re: A Question on car allowance and fuel tax????
The way it works for me is: I have a VAN and a fuel card. Now as long as my tools are in the back, I don't get taxed on fuel or anything. My employers are pretty good in that they let us use the vehicles out of hours for private use without any quibbles on the fuel cards. If I had a car, I would have to keep a record and pay for personal mileage. I belive it's something to do with the fact that the employer can claim the VAT back on the Diesel that's used in the vans (marked up with company logo) but not on any cars, regardless of whether they're marked up or not.
So - if you can get away with a van, sitckered up with the company's logo, you might get away with it ;)*
*may be complete ballcocks
Re: A Question on car allowance and fuel tax????
Thanks for the advice peeps.
Stay Cool!
Re: A Question on car allowance and fuel tax????
Does anyone know of a website that I can visit to check the responsibility of an employer when not providing a company car or the funds to maintain he vehicle?
Surely I am entitled to money back for depreciation? I have done nearly 16'000 miles since February this year!
Any advice would be greatly apprecated.
Re: A Question on car allowance and fuel tax????
You should be claiming business mileage back off them (a pence per mile figure) - covers fuel and fair wear & tear (which will include depreciation) etc - for anything where you drive for them, except to and from place of work. Plus you should check you are covered on your insurance for "business use".
edit: it also appears that if the employer isn't paying the recommended amount, you can put in a claim as tax relief.
Re: A Question on car allowance and fuel tax????
That's brilliant advise. Thanks.
Is there a website I can visit and print off the information you just mentioned? My employers are the kind of people who want everything in black and white.
Re: A Question on car allowance and fuel tax????
TBH your employers should speak to their accountants who will advise them - esp. considering that the employer may well be better off (tax breaks) paying the recommended amounts.
You can start here: Mileage - Employee Fact Sheet
edit: I never knew you can claim "bicycle mileage" @ 20p per mile also, there's also breaks for carrying passengers (on business mileage).
edit: you may also wish to point out to employers asking you to use private cars, that they may well need to look into Health & Safety issues - with a company car they know where they stand in terms of MOT, servicing and road-worthiness, but not so with private cars - there *may* be an issue with them being responsible for checking.
edit: also see if there's anything about off setting your increased business insurance premium, perhaps against personal tax?
Re: A Question on car allowance and fuel tax????
Chadders!
Thanks for the advise so far! I have just one more question. We (as a business) also have people who are self emploed contractors. The too are provided a fuel card by our company - yet still have to use their own vehicles. Are they able to claim on mileage as normal employees are?
Thank you for all your help.