05 July 2008
Non UK Domicile Tax Status
Home --> Fuel Scale Charges 2002/2003
Savings for Non Uk Domicile

 

Free fuel provided to an employee by the employer is taxable based on a fuel scale charge calculated by reference to vehicle engine size and fuel type (petrol or diesel) as follows:

Engine size (cc)
Annual fuel scale charge - petrol engines
Annual fuel scale charge - diesel engines
less than 1,400 cc
£2,240
£2,850
1,401 to 2,000 cc £2,850 £2,850
over 2,000 cc £4,200 £4,200

You can use this calculator not only to calculate the amount of tax that you are paying in respect of this benefit-in-kind but also to see if the benefit itself is worth it.

For example if you have a very low private mileage you may find that you are paying more in tax than you would pay for fuel!

The calculator assesses the break-even mileage required to justify this benefit in kind - if the break-even mileage is more than your actual mileage this is not of benefit to you.

Tax on free fuel and break even private mileage
Fuel type
Marginal rate of tax
Vehicle engine size in cc.
Vehicle mileage per gallon (estimate)
Price per gallon (£) (estimate)
Annual fuel scale charge
Annual fuel tax
Annual break even mileage.
 
NB: If you forego the free petrol your employer may be willing to share the savings the company will make with you of:
Employers NI on fuel scale charge
Cost of providing free fuel


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