#### lainey

In our business we have given fuel cards to those who travel a large distance to our offices. To make it a complete benefit for them we have come up with a system that I hope works.

We take the fuel cost that has been put into the car say £60 then gross this amount up to £88.23. This takes account of the tax and NI cost on the fuel, for example if you take £88.23 x 20% = £17.65 and £88.23 x 12% = £9.71 total charge = £27.36 which if you take this from £88.23 it equals £60.87 ie the amount of fuel cost.

In the payslip it is detailed in their income as a seperate line as Fuel provided £88.23 and then on the deductions private fuel £60.00. Therefore there is no difference to the employee in their net pay but we have paid over the tax and NI on the grossed up fuel cost.

We have not done a P11D for this either.

Could anyone tell me if this is the correct way of dealing with this?

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