Contents
All change for pensions
A waste of time & money
Tax credit mess
Fuel up (shock)
Gimme shelter
Gulp! SIPPS
Paper or plastic?
Re: Mortgages
Bank the cheque
Subs beware
VAT's the limit
Dividend end?
The buck stops
Sack with care
Selling up
A matter of trust
We're watching
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Fuel up (shock) Everyone else has noticed that the price of petrol has risen sharply, and finally the Inland Revenue have recognised this. They allow a "petrol-only" mileage rate to be paid to company car drivers (whose employer meets all other costs of running the car) without any taxable benefit arising. The rates have stayed the same since January 2002, but they have been changed very slightly from 1 July 2005. In fact, it's only the rates for larger cars - with engine capacities over 2000cc - that go up, from 14p to 16p for petrol cars and 12p to 13p for diesels. The other rates remain unchanged. It's interesting that the Inland Revenue have now given an explanation of how the figure is calculated (which they kept to themselves before). The figure for a small car (10p) is based on a fuel consumption of 41 miles per gallon and a petrol price of 88.2p per litre. It would be a pleasant surprise to find petrol at that price at the moment. It is always open to the employee to claim for the actual cost of business fuel consumed. Unfortunately, it's much more complicated. You have to keep all your petrol receipts and details of non-business miles as well as business miles, so you can calculate that 32.75% of your year's fuel cost of £1,436 is more than 4,512 miles at 10p. That might save you about £8 in tax, and most people won't bother. If you want to be sure what you are allowed to claim for use of a company car or for your own car, whether you are employed or self-employed, we will be happy to advise you.  |
© Bayar Hughes & Co., 2010.