Questions from our Forum – 16/08/11

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Each week we receive a number of payroll questions on our forum, and here are this week’s batch. Can you help with any answers?

Car Allowance and Free Fuel

We have an employee who has changed from a Company Car to a Car Allowance and they pay for all of their fuel using a Company Credit Card and don’t have to reimburse the Company for Private mileage. When they had a Company Car it was easy to administer on their P11d as we just ticked the box to indicate they had free private fuel, but now we can’t do that so please can someone advise on how we go about it.

My first thoughts were that they recorded their start and end mileage each month and then logged their business mileage so we could work out the difference which would be private mileage and then put the annual amount of private mileage costs on their P11d but I have tried searching the web for ideas and it has been suggested that for a Fuel Card, which i assume would be the same as a Company Credit card, that you have to report the total cost of all fuel paid for in the year on their P11d, which would include fuel for business mileage and they would be taxed on the full amount?

More…

Further questions from our forum:

1. An employee is pregnant and entitled to SMP but is due to be made redundant.  Are we still required to pay SMP?
2. Where the authority for not calculating NICs using the Table method and the Exact Percentage method on the same payroll system?

Tags: car allowance, forum questions, free fuel, NICs, Recent Payroll News, smp, travel expenses, Your questions

This entry was posted on Monday, August 15th, 2011 at 11:20 and is filed under Forum. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.