Fuel Benefit Charge

FUEL BENEFIT CHARGE

As a further incentive to drive fewer miles and thereby reduce harm on the environment and to reduce our reliance on fossil fuels, drivers of company cars who receive "Free Private Fuel" will see the figure used by HMRC rise this tax year.

The figure on which the "Benefit in Kind" calculation is based on has risen from £14,400 - £16,900 since the begining of the 2008/09 tax year.

In simple terms the same percentage as applied to the calculation for the car is used for the Fuel Benefit Charge and then subject to your personal taxation amount @ 20% or 40%.

In summary you will need to work out your break even point based on your anticipated Personal Milege to ensure it is a true benefit to receive free fuel. Please be aware HMRC consider travel to and from work to be private mileage.

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