Tax implications of Fuel card

Good question ! By referring to an accurate set of mileage records!.

Yes, but the IR don't pay you the 40p they adjust your allowances by 40p so you benefit by the tax (at your highest rate) on 40p. Only to the extent that business miles have been done and your employer has not already re-imbursed you.

One question, do you actually have a complete set of records of Buiness miles and private miles done, and amounts paid for your benefit via your fuel card over the years in question?

You will certainly need to be able to justify amounts claimed with reference to actual journeys done and actual mileages.

This is a non-standard arrangement and there are pitfalls. I'd like to bet your employer is recovering the VAT on road fuel whereas this should be a cost to you, the 40p /mile is suppposed to cover it. Also ISTM your employer does not know how many business miles and how many private miles he is buying fuel for, one wonders if he is paying the VAT scale charge for VAT on fuel for private use .

Can of worms IMO. get it sorted and hope the revenue don't come on to you for a couple of years of back tax because you've been getting car fuel benefit for which there are ample records, and setting this against business miles for which proper records are, I guess, unavailable.

DG

Bitstring , from the wonderful person Bill said

You need proper records of mileage (private and business) and fuel purchased. Frankly izza canna worms .. you'd probably be much better off repaying the company for the fuel, and getting paid a mileage rate for business miles (something which includes the fuel). You'd certainly have more luck explaining and justifying it to the IR, should they query.