How much would you pay for fuel?
#41
PassionFord Post Whore!!
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Free fuel is worth having if your car has low CO2, low mpg, and you do plenty of private miles. Any one of these going in the wrong direction can make it a non-benefit.
If what I'm about to tell you saves you money, send me 10% of the saving (or buy me a Guinness)! If it doesn't at least you will know the sums are OK for you.
From 6 April the scale charge for Benefit in Kind on free Private Fuel goes up to £18,000 per year. (Currently £16900)
To calculate the liability for your car, you take the same % that you pay your company car tax on.
As an example, if you are in a Mondeo 2.0 TDCi 140 Zetec with 156g/km and 23% car benefit, you take 23% of the £18,000.
The resulting £4140 is how much you have to pay tax on for your "free" private fuel. As a 20% tax-payer it will cost you £828, or £1656 if you pay 40% tax.
What Car says that particular car will do an average of 47.9mpg - I reckon you'll do well to average 45mpg. If fuel stabilises at an average of £1.20 per litre (£5.45 a gallon) a lower-rate tax payer will need to drive 6837 private miles just to break even on "free" fuel. A higher-rate tax payer needs to drive twice as much to achieve value for money at 13674 private mile.
Last edited by Iain Mac; 02-04-2010 at 04:12 PM. Reason: Got my wucking mords fuddled
#45
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try paying for a 1000 litres a week, that what i have to with the wagon, id fuckin bum gordon brown, and his buddies if i got chance, because thats what they do to us every twating day
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