What
does this mean?
Fundamentally,
that unless effective action is taken, both your company and employees
alike will receive hefty tax bills from the Inland Revenue.
How does Free Fuel Benefit in Kind charges effect drivers?
From
the drivers point of view the calculation is reasonably straightforward.
You need to compare the cost of paying for your own private fuel
versus the tax you will pay under the fuel scale charge.
You should stop taking free fuel when the tax charge is higher
than the actual cost of the fuel you receive.
You can check this by linking to www.cartax.co.uk/cartaxcalcs
click on Fuel Scale Charge and complete the form.
How
does Free Fuel Benefit in Kind charges effect companies?
The
bottom line cost in providing drivers with free fuel is a degree
more complex for businesses to assess and includes a number of
factors including:
The Cost Of The Fuel
VAT
Adjustments
National
Insurance Costs
Corporate
Tax Relief
