Help needed understanding options for company car fuel

[markirl]

Hi folks,

I've started a new job and have a couple of questions regarding fuel. I'm clear on how the BIK works, just not fully sure what the fuel situation is. Initially I'll be driving a 1.5 petrol. I will transition to an EV when it is delivered. I will do predominantly business mileage in the car - 5% of mileage will be private

As I understand I have a few options:
1. Fuel card incl private use: I pay BIK of around £3000 - no go for me
2. I claim 15p/mile back from the business - I don't believe the car will be able to achieve anything over 40mpg which means I'll be subsidising fuel cost here to the tune of £600/year
3. Employer pays for all fuel and I log private use and pay 15p/mile for all of my private use.
4. Employer pays for all fuel and I pay them in £ for the value of fuel that I use for private: not sure how this works in reality?
5. Employer pays for fuel which I use for business and I put fuel in to cover private use: not sure how this works in reality?

I'm leaning towards option 3 which seems the fairest all round, have I missed something?

Also, for EVs, my understanding is that currently there is no BIK attracted if my employer pays for all of my charging - personal or business - am I correct?

Thanks in advance!

[Muzzer79]

Has the company given you all these options or are you creating and proposing them?

Some of them sound odd as a policy choice.

Whilst they may be giving you 15p per mile, don’t forget that the HMRC mileage allowance is 45p per mile up to 10k miles per year.

[Muzzer79]

On your last point, do you mean BIK on fuel or the car or both?

[markirl]

As i understand it, 45p is only if you are using your own car? 15p is the advisory rate for company vehicles 1400-2000cc from what I've read but, of course, I'm here because I'm not clear!

I haven't had a discussion re policies with them yet, it's all been quite casual but I want to know what options are available prior to discussion - I.e. what options are open from a HRMC point of view.

Also, re the EV I meant regarding fuel - I'm clear on BIK for the cars (I think!)

[Muzzer79]

https://www.gov.uk/government/publications/rates-a...

45p is the HMRC approved rate. You claim for the tax difference between what the company give you and the 45p, up to 10k miles.

You are looking at advisory rates, what the govt suggest that companies should give.

Re: BIK on electricity, AIUI HMRC do not classify electricity as a fuel, therefore it does not attract BIK if they supply it.

I recommend you talk to your new company about what their actual policies are on fuel reimbursement and rates before getting too far in to this.

[Sheepshanks]

markirl said:

As i understand it, 45p is only if you are using your own car? 15p is the advisory rate for company vehicles 1400-2000cc from what I've read but, of course, I'm here because I'm not clear!

You're correct on the 15p - the AFR rate gets reviewed every quarter.

In your options, 3 is the most typical, which would work well for you if the actual fuel cost is more than that. As others have said though, you may not have much choice in the matter.

[RayDonovan]

If you get a company car, you can't claim the difference between 15p and 45p back. Only works if you get a car allowance IIRC

[Muzzer79]

RayDonovan said:

If you get a company car, you can't claim the difference between 15p and 45p back. Only works if you get a car allowance IIRC

Of course, I was mistakenly thinking opting out.

15p is the advisory rate. That should cover a car with reasonable mpg?

I have a 520d, it averages 42mpg overall and Fuelly tells me that’s 14p per mile on fuel alone

Go for option 3 if you can

[RayDonovan]

Muzzer79 said:

RayDonovan said:

If you get a company car, you can't claim the difference between 15p and 45p back. Only works if you get a car allowance IIRC

Of course, I was mistakenly thinking opting out.

15p is the advisory rate. That should cover a car with reasonable mpg?

I have a 520d, it averages 42mpg overall and Fuelly tells me that’s 14p per mile on fuel alone

Go for option 3 if you can

The advisory rates for a 520d are 15p mile based on 49.8mpg with fuel costing 169.7p / litre.

[mcg_]

markirl said:

As i understand it, 45p is only if you are using your own car? 15p is the advisory rate for company vehicles 1400-2000cc from what I've read but, of course, I'm here because I'm not clear!

I haven't had a discussion re policies with them yet, it's all been quite casual but I want to know what options are available prior to discussion - I.e. what options are open from a HRMC point of view.

Also, re the EV I meant regarding fuel - I'm clear on BIK for the cars (I think!)

worth having a chat as I don't think they'll all be options

either fuel card or no fuel car and 15p a business mile I imagine are what the options will be.

If you can get a car allowance instead, then fuel card makes sense