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Fuel For Private Use Fuel For Private Use
The government has made it clear that it wants to discourage the provision of fuel for private use. Where an employee has this benefit, a separate tax charge is due. This is calculated by multiplying the fixed Fuel Charge value (2008/9 = ?16,900 pa) by the same CO2-driven percentage as for the main benefit charge.
This Table illustrates all the benefit tax calculations for a new Golf (Mk 6) SE TDI 140ps 6-speed:
| Benefit tax on Private use: | ||
|---|---|---|
| On the car | ||
| List Price + Delivery | ?18,571 | <18,086 + 485> |
| CO2 | 129 | g/km |
| Tax %age | 18% | Basic 15% charge for CO2 <139; plus 3% diesel supplement |
| Tax Charge | ?3,343 | "Salary equivalent" of benefit |
| Tax Charge | ?3,343 | "Salary equivalent" of benefit |
| Driver tax @ 20% | ?669 | |
| Driver tax @ 40% | ?1,337 | |
| On Fuel for Private Use | ||
| Fuel Scale Change | ?16,900 | |
| Tax%age | 18% | Same CO2-based percentage as for private use |
| Tax Charge | ?3,042 | "Salary equivalent of benefits" |
| Driver tax @ 20% | ?608 | |
| Driver tax @ 40% | ?1,217 | |