When an employee or director has the use of a company car, they pay tax in return for the privilege. If the company also pays for all the fuel they use for their private motoring, they pay some more tax in return for that privilege too.
There was a time where it might be desirable to have your private fuel paid for, if you used the car for lots of personal mileage. These days, it's very unlikely - the tax that most people would pay would far outweigh the benefit of having their private fuel paid for.
The tax cost is based on a standard figure (£22,100 at present), times a multiplier based upon the car's emissions figure, times the marginal tax rate that the recipient is paying. A fairly normal car could have a multiplier of say 29%. That means that a higher rate taxpayer would pay tax of £22,100 x 29% x 40%, which is £2,564 - over £200 a month. For the majority of drivers, that's more than the private fuel used would cost.
If you really hate record-keeping, then by all means have the company pay for everything and take the tax hit. For most people, though, it's going to better to pay for all fuel themselves, and claim the business part from their company.
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