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Where Taxpayers and Advisers Meet

P11D Fuel benefit question

calvr1ch
Posts: 4
Joined: Thu Jun 22, 2017 4:22 pm

P11D Fuel benefit question

Postby calvr1ch » Thu Jun 22, 2017 4:41 pm

Hello everyone,

I up until recently have been putting my own fuel in my company car for my private mileage. I also have a fuel card that I use for company mileage. A few months back my company had a vat inspection and was told that this is not how to do it.
I have recently started paying for fuel via the fuel benefit on my P11D which I find extremely expensive. The accounting firm that works for our company have told me that the only way around this is for me not to have a fuel card, put the fuel in myself and claim the company mileage back @ £0.11 per mile which would also see me out of pocket)
I asked them if I still used the fuel card to pay for all the fuel used and then declare my private mileage to the company to be deducted from my wages as this is how I used to do it at my previous employment. They told me that because I use a fuel card I can't do it this way. Is this correct or could anybody else offer me any advice?
Thanks in advance.

bd6759
Posts: 3094
Joined: Sat Feb 01, 2014 3:26 pm

Re: P11D Fuel benefit question

Postby bd6759 » Thu Jun 22, 2017 9:52 pm

There are 2 requirements.
First, you must be required to reimburse fuel used privately, Doing so voluntarily does not cut it. It must be condition imposed by your employer in relation to the provision of the car and the fuel card.
Second, you must actually do so. Reimbursing at advisory fuel rates is accepted by HMRC.

https://www.gov.uk/government/publicati ... fuel-rates

calvr1ch
Posts: 4
Joined: Thu Jun 22, 2017 4:22 pm

Re: P11D Fuel benefit question

Postby calvr1ch » Fri Jun 23, 2017 12:12 am

Hi

Thanks for your reply. I do understand exactly what your saying and I'm not trying to avoid paying any private mileage whatsoever as I always keep accurate records of my miles both private and company. My question is can I pay my private mileage by declaring it each month using the advisory rates while I am using the company's fuel card? The accountants who look after our payroll are saying that I can't do it this way and that the only way to do it(apart from paying the fuel benefit) would be for me to use my own funds to pay for all the fuel and to claim my business mileage back from my employer?

bd6759
Posts: 3094
Joined: Sat Feb 01, 2014 3:26 pm

Re: P11D Fuel benefit question

Postby bd6759 » Fri Jun 23, 2017 6:32 pm

The accountants are wrong. HMRC accept reimbursement at the advisory rates.

bd6759
Posts: 3094
Joined: Sat Feb 01, 2014 3:26 pm

Re: P11D Fuel benefit question

Postby bd6759 » Fri Jun 23, 2017 6:34 pm

But this MUST be a term imposed by your employer. It seems that they have not imposed this requirement, therefore if they do provide fuel you will be liable to the scale charge even if you reimburse it.

calvr1ch
Posts: 4
Joined: Thu Jun 22, 2017 4:22 pm

Re: P11D Fuel benefit question

Postby calvr1ch » Wed Aug 30, 2017 8:37 pm

Thanks for the responses.Just an update on this, I am now paying for my private mileage at the advisory rates and have made BACS payments for all my recorded private miles back to April detailing them to my employer. My next question is can I claim the fuel benefit I have already paid back and who do I need to speak to to do this, our accounts or the tax helpline?

Thanks again.

bd6759
Posts: 3094
Joined: Sat Feb 01, 2014 3:26 pm

Re: P11D Fuel benefit question

Postby bd6759 » Thu Aug 31, 2017 9:40 pm

You will be payimg the fuel charge via your tax code. You'll need to speak with HMRC to have it removed from your code.

calvr1ch
Posts: 4
Joined: Thu Jun 22, 2017 4:22 pm

Re: P11D Fuel benefit question

Postby calvr1ch » Thu Aug 31, 2017 9:44 pm

You will be payimg the fuel charge via your tax code. You'll need to speak with HMRC to have it removed from your code.
Thanks, i will call them tomorrow.


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