Avoid car-fuel benefit charge for 2018-19
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. 


Legals

Registered in Cardiff. Company Registration Number: 4708031 VAT No. GB 685 5090 08 Copyright © 2019 Ace Accountants Ltd
Cookies Policy
Privacy Policy

Follow Us

|   |  

Membership

   
 

Find us!

Ace Accounting main office
The White House, Denchworth Road, Grove, Oxon, OX12 0AR

Call Us: 01235 773300
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

Follow Us