Avoid car-fuel benefit charge for 2018-19

Source: HM Revenue & Customs | | 22/01/2019

The easiest way to ensure that no car-fuel benefit charge (for private journeys in a company car) is payable, is to use the advisory fuel rates published by HMRC to repay any private fuel costs to your employer. The advisory fuel rates are intended to reflect actual average fuel costs and are updated quarterly.

However, the car-fuel benefit charge will still be payable if it cannot be demonstrated to HMRC that the driver of the car has paid for all fuel used for private journeys, this includes commuting to and from work. To ensure that this does not occur employees will need to keep a log of private mileage.

The latest advisory fuel rates became effective on 1 December 2018. Fuel rates are reviewed four times a year with changes taking effect on 1 March, 1 June, 1 September and 1 December.

Action to take before 5 April 2019

If you have a company car and your employer pays for all your petrol you will need to work out your actual private mileage for 2018-19, multiply this by the appropriate advisory fuel rate, and pay this amount to your employer.

This will avoid being charged the expensive car-fuel benefit - in most cases the tax saved will be more than the amount of your repayment to the employer.

If in doubt, give us a call and we will help you crunch the numbers. 

 

Latest news

  • Tax Diary May/June 2019

    25/04/2019 - More...

    1 May 2019 - Due date for Corporation Tax due for the year ended 30 July 2018. 19 May 2019 - PAYE and NIC deductions

  • Debt Relief Orders

    23/04/2019 - More...

    It is over 10 years since Debt Relief Orders (DROs) were first introduced in April 2009. We have fleshed out the details

  • Maternity pay explained

    23/04/2019 - More...

    How much maternity leave can you take? If you work as an employee and become pregnant you are eligible to take up to 52

Search archive


Newsletter

With our newsletter, you automatically receive our latest news per e-mail and get access to the archive including advanced search options!

» Sign up for the newsletter
» Login