The use of company fuel cards for personal travel, including journeys to and from work, is effectively using company funds to pay for personal expenses. This is classed as a taxable benefit. The business must then pay National Insurance contributions (at 13.8%) on the value of the fuel being used for personal use.

Should I take a company fuel card?

Use of a fuel card for business purposes is not classed as a taxable benefit. That said, if a person uses the card to cover the cost of the fuel for personal travel, the company is liable to tax charges.

How is car fuel benefit calculated?

The fuel benefit charge is calculated by multiplying the fuel benefit charge multiplier by the car’s appropriate percentage; that is the CO₂ emissions derived percentage used to calculate the car benefit charge, including any diesel supplement.

Is it cheaper to have a fuel card?

While using a fuel card may limit your drivers in terms of where they can top up, fuel cards offer cheaper rates than more traditional payment methods. Most fuel card providers offer tools for locating the service station closest to you.

Can you use a fuel card for any vehicle?

Individuals within a business can have a fuel card assigned to them by the company so that the company pays for their fuel. Fuel cards can also be assigned to particular vehicles, rather than the individual driving them, which is particularly useful if multiple drivers drive multiple vehicles within a company.

Can anyone get a fuel card?

Who can apply for a fuel card? There are a lot of preconceptions regarding fuel card eligibility, but the simple answer is that any business (large or small) can apply for a fuel card. Fuel card providers are more than willing to offer fuel cards to any business, including sole traders and those who are self-employed.

Do you get taxed on fuel card?

What are the benefits of having a fuel card?

Just some of the benefits of fuel cards are as follows:

  • A quick and convenient way to pay for fuel.
  • Increased security and a safer alternative to carrying cash.
  • Tighter control of business expenses.
  • Streamline mundane admin processes.
  • Increased flexibility for refuelling across a huge network.

Do fuel cards save you money?

Using a fuel card is a great way to save some money, both by getting the fuel at a discounted rate and also by being able to better manage and track the way the vehicle is driven. Here’s a few of the myths about buying fuel and using a fuel card that you may have heard.

Is it hard to get a fuel card?

Some gas cards are fairly easy to get approved for, either because they are gas-only credit cards or regular rewards cards geared to consumers with poor credit. Gas cards report to the three credit bureaus, which can help you build credit over time. Gas cards can help you earn rewards or discounts when you fill up.

When to use a fuel card for tax purposes?

Employees should only use their fuel cards to pay for work-related travel or, if they do use it for private fuel, pay back those costs to the company. That way, no tax obligation is created because no taxable benefit has been provided.

Is the fuel benefit charge a tax charge?

The fuel benefit charge is normally the only tax charge for the provision of fuel for private use by an employee (or members of their family or household) in a ‘company vehicle’.

Do you pay tax on company car fuel?

If the mileage allowance is excessive, but it’s only paid for genuine business travel, the ‘profit element’ will be chargeable to tax in the normal way. However, a car fuel benefit charge will arise where, for instance, the payments to the employee cover travel between home and work.

Do you have to pay VAT on fuel card?

As a result, you must pay VAT on fuel if an individual uses their company fuel card for non-business travel. Similarly, those who use a fuel card for private mileage face a variable fuel benefit charge based on several factors, including the type of fuel and CO2 emissions of their vehicle.