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HMRC internal manual

Employment Income Manual

Van fuel benefit from 2005/06: making good

Sections 163 ITEPA 2003

The van fuel benefit charge is incurred as detailed at EIM22900; there is an example at EIM22980.

Making good

Where the employee is required to make good the cost of all fuel provided for private use (Condition A at EIM22920) this may be done by:

  • payment - that is, by paying the employer a sum of money either directly or by deduction from his or her net salary or wages, or
  • reinstatement - that is, by replacing fuel provided by the employer (or another person on behalf of the employer) by a corresponding amount of fuel purchased from his or her own pocket, or
  • any combination of the ways described above.

So long as suitable measures are in place to administer this, you can normally accept an employer’s statement:

  • that the employees are required to make good fuel provided for private motoring and
  • that they actually do so.

From the 2017/18 tax year the latest date for making good the cost of all fuel provided for privae use when calculating the van fuel benefit charge is by 6 July following the tax year in which the private fuel is provided.

Belated making good

The guidance at EIM25660 applies to van fuel benefit as it does to car fuel benefit.

Advisory fuel rates

These rates (see EIM25655) cannot be used in relation to vans as this is not one of the uses specified on the HMRC website. This is because they were not calculated in relation to vans but from the average fuel consumption for the most popular fleet cars.

2005/06 and 2006/07

Because the van fuel benefit charge is nil for these two years, its existence can effectively be ignored until 2007/08.

Years prior to 2005/06

There was no separate charge for van fuel before 2005/06 because the benefit was covered by the van benefit charge, see EIM22068.