Avoid car-fuel benefit charge for 2018-19

Source: HM Revenue & Customs | | 23/01/2019

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. 



Contact Us

8-10 Queen Street
Seaton
Devon
EX12 2NY
Tel: 01297 624188

Also in Exeter

13 West Street
Exeter
Devon
EX1 1BB
Tel: 01392 823999

 

Cookie Policy

Latest News

Tenth anniversary of first Debt Relief Order
17/04/2019 - More...
Debt Relief Orders (DROs) were first introduced in April 2009. The DROs assist people who have small levels of assets

Estate Agents targeted
16/04/2019 - More...
HMRC has launched an unannounced crackdown on money laundering regulation non-compliance by estate agents. This

Job related expenses you can claim against your tax
16/04/2019 - More...
If you are an employee and use your own money to buy things that you need for your job, you may be able to claim tax

News Search


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