UK Gov gets blood from stone!
The graph shows the total tax and NIC take from private fuel scale charge compared to the number of employees “enjoying” the benefit (the red line).
The Exchequer has kept the tax and NIC above £300m per annum whilst the total number of takers has fallen by nearly 50% (from 330k to 180k) in just 8 years.
The brutal fact is that, from a purely financial perspective, an employer should never pay for private fuel. For a high private mileage employee it may make sense to pay tax of (say) £1,000 to receive private fuel worth £1,100 – but from the employer’s perspective it’s a nonsense to pay for the fuel and the related NIC to give that employee a net benefit of just £100. And yet 180,000 people receive the benefit of private fuel in a company car