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Our client company recently had a PAYE inspection. An employee who uses his own car for business purposes has the fuel paid for with a company fuel card, and the employee is required to make good the cost of fuel for any private use. Detailed records have been kept and private mileage actually amounted to 2,276 miles over a three- and-a-half year period. The amount owed to the company over this period was therefore £227.60, calculated at 10p per mile.
Our client company recently had a PAYE inspection. An employee who uses his own car for business purposes has the fuel paid for with a company fuel card and the employee is required to make good the cost of fuel for any private use. Detailed records have been kept and private mileage actually amounted to 2 276 miles over a three- and-a-half year period. The amount owed to the company over this period was therefore £227.60 calculated at 10p per mile.
Unfortunately this sum was not actually repaid to the company during the years in question and HMRC suggest that fuel benefit is charged for these years although they are prepared to restrict the charge to the tax years
2004-05 and 2005-06. This would still amount to taxable benefits of approximately £10 000 resulting in a tax charge of £4 000...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
