Hey Wifey has a company car. Wifey pays extra income tax and has a special tax code because of a company car. Apparently she also has to declare her private miles and pays tax on that too. Is that right? She pays for all fuel and claims back her work miles @x.xx ppm.
If she pays for her fuel she should only get taxed on the bik for the car. If she has a "wet" car - ie company pays all of her fuel then she would be taxed on fuel bik as well. Most companies require you to log mileage .......I think.
I have fully expensed c car I.e company pays all fuel costs, no need to log miles, however the BIK for the fuel is costly and means I need to drive about 8k private miles for it to be a benefit. You can ring your tax office and tell them you / she doesn't get fuel
Im lucky in that my company covers all costs for my vehicles. Including the tax in which they pay me to me to cover. Have to have the vehicles for work.
The following shows how to calculate how much tax (BIK) you pay on a company car (not fuel however) – 1) Take your company car’s P11D value (for example £15,000) 2) Multiply this value by the car’s company car tax rate which is dependent on CO2 emissions (for example 15%) to get your BIK amount 3) Multiply this BIK value by your personal tax rate - 20%, 40% or 50% - (for example 20%). This will be the amount of company car tax payable. £15,000 x 15% = £2,250 (BIK amount) x 20% = £450 per year
If the car goes home with you then you have to log personal mileage as the tax allowance stops at a certain mileage for businesses so they have to log it. It's a big fine if they (your company) don't keep accurate logs. It was devised to stop businesses providing untaxed salary too ups via business car allowances.
More companies now provide a fuel card but demand the employee to declare business miles, calculate the fuel cost used, and take the balance (ie provate fuel costs) from their salary. This negates the need for BIK on the fuel card Unless you are doing about 20k a year, dont take a fuel card, claim the miles instead
This site enables you to work things out for your exact model of car and the amount of private miles you do. Comcar Always found it spot on. Unless you do loads of private miles, it's usually best to pay for your own fuel. Cheers.
If you're a higher tax earner you'll pay about £170:00 month in tax if the company pays all your fuel. That's a lot of private miles but don't forget travelling to and from your daily place of work is private mileage, my Mrs travels almost 100 miles a day to her office so she pays the tax. As said, comcar is a good site...
