What tax is paid on a fuel card?

Are you taxed on a 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 does a fuel card affect tax?

When does giving fuel cards to employees have tax implications? If employees use a fuel card to cover all or part of any private travel, including journeys to and from work, then they are in effect using company funds to pay for their personal expenses. This makes it a taxable benefit.

How much tax do you pay on fuel allowance?

45p per mile is the tax-free approved mileage allowance for the first 10,000 miles in the financial year – it’s 25p per mile thereafter. If a business chooses to pay employees an amount towards the mileage costs, these reimbursements are called ‘Mileage Allowance Payments’ (MAPs).

Is it worth having a fuel card?

Company fuel cards can reduce the costs of filling up your business car(s), especially as most of them only work at discounted fuel stations. Fuel cards also take away the time and money spent on administration/accounting needed for a pay and reclaim system.

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What’s the benefit of a fuel card?

With a fuel card, the financial benefits can be more than simply discounted fuel. This is because, when you have a fuel card, you don’t pay at the pump. Instead, all fuel costs for a given week are collected into one single invoice, which is then taken out as a single direct debit payment 7 days later.

What are the benefits of 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?

Buying cheaper petrol and diesel is the central strategy to saving your business money through fuel cards. By driving down the average cost per litre by a few pence can save thousands of pounds in the course of a year. Fuel cards facilitate a number of actions to help this happen.

Can I get a fuel card for personal use?

Unfortunately, fuel cards are not suitable for personal use; this is because to complete the application process, a fuel card needs to be registered against a company.

How much is a fuel card?

How much do fuel cards cost?

Type of cost Approximate price range
Annual card fee £0-£24, generally about £18 (per year)
Application fee Variable; usually free, although some providers may charge
Card replacement Variable
Invoice requests (e.g. paper or additional copies) £0-£25, generally around £5-£10

Do I have to pay tax on fuel allowance?

You will not have to report to HMRC or pay tax, but: your employee will be able to get tax relief (called Mileage Allowance Relief, or MAR ) on the unused balance of the approved amount.

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Do I need fuel receipts to claim mileage?

The answer is yes, you must keep the fuel receipts if you want to claim the VAT on the mileage expenses.

How do you calculate fuel tax?

Multiply the eligible quantity of fuel by the relevant fuel tax credit rate (step 1 × step 2). You must divide the result by 100 to convert it into dollars. Claim the whole dollar amount on your BAS. Do not include cents.

Is fuel cheaper with 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.

Is a fuel card a credit card?

Fleet cards are a type of payment card that allows businesses to manage expenses associated with the vehicles they own and operate. Fleet cards, also known as fuel cards, act just like charge cards and are provided by major oil and/or specialized credit companies.

How can I make money with a fuel card?

Rebate From The Merchant

The first primary source of how fuel card companies make money is merchant rebates. The fuel network says to the gas station owner, if you accept our fuel card can you rebate a 1-4% back on every fuel purchase to the fuel card company.

Public finance