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Posted Wed, 01 Mar 2023 09:43:51 GMT by annaw
We have a employee who is provided a company van. The employee pays for all fuel and keeps a mileage log of the miles done for business and for personal use. We can't use the advisory fuel rates as they aren't for company vans so how do we reimburse the employee for fuel costs for business? Would be payment be subject to deductions for Tax and NI?
Posted Mon, 13 Mar 2023 12:35:48 GMT by HMRC Admin 19
Hi,

You should calculate any reimbursement on a just and reasonable basis ensuring the employee is not profiting from it. You need to come up with your own calculation and if you are are satisfied that you are only reimbursing the business costs then you should use that calculation.

Thank you.

 

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