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HMRC internal manual

Employment Income Manual

Car benefit: the charge to tax: contents

This index covers the charge to tax. There are related indexes at:

  1. EIM24000
    Car benefit: calculating the cash equivalent
  2. EIM25500
    Car fuel benefit
How the car benefit charge works and what it covers
  1. EIM23015
    Car benefit: introduction
  2. EIM23020
    Conditions for the charge to apply
  3. EIM23021
    Guidance on the new legislation on company cars
  4. EIM23025
    Scope of the charge
  5. EIM23030
    Exceptions
  6. EIM23035
    Prohibition on other tax charges where car benefit charge applies
  7. EIM23040
    Is an employee chargeable under the benefits code: effect of expenses, etc paid in connection with a provided car
  8. EIM23045
    Expense of a chauffeur
  9. EIM23050
    Benefit not otherwise taxable
  10. EIM23055
    Class 1A National Insurance contributions payable to employers
  11. EIM23060
    Fair bargain
Conditions for the car benefit charge to apply: the vehicle must be a car
  1. EIM23100
    Conditions for car benefit to apply: meaning of ‘car’
  2. EIM23105
    Flowchart
  3. EIM23110
    Car or van - summary
  4. EIM23115
    Vehicle of a construction primarily suited for the conveyance of goods or burden of any description: meaning of construction
  5. EIM23120
    Vehicle of a construction primarily suited for the conveyance of goods or burden of any description: meaning of primarily suited
  6. EIM23125
    Vehicle of a type not commonly used as a private vehicle and unsuitable to be so used: meaning of type
  7. EIM23130
    Meaning of not commonly used as a private vehicle
  8. EIM23135
    Meaning of unsuitable for use as a private vehicle
  9. EIM23140
    Meaning of unsuitable for use as a private vehicle: emergency vehicles
  10. EIM23145
    Off road and multi-purpose vehicles
  11. EIM23150
    Double cab pick ups
  12. EIM23155
    Other specific types of vehicle
  13. EIM23160
    Meaning of car: submissions to PAYE Technical
Conditions for the car benefit charge to apply: the car must be made available without any transfer of the property in it
  1. EIM23200
    Conditions: made available without any transfer of the property in it
  2. EIM23205
    Meaning of without any transfer of the property in it
  3. EIM23210
    Meaning of without any transfer of the property in it: part ownership
  4. EIM23215
    Meaning of without any transfer of the property in it: cars leased to director or employee
  5. EIM23220
    Transfer of ownership of the car to the employee
  6. EIM23225
    Employee car ownership schemes
Conditions for the car benefit charge to apply: the car must be made available by reason of the employee’s employment
  1. EIM23250
    Conditions: available by reason of the employment
  2. EIM23255
    Meaning of by reason of the employment: car made available by the employer
  3. EIM23260
    Meaning of by reason of the employment: car made available by someone other than the employer
Conditions for the car benefit charge to apply: the car must be available for private use
  1. EIM23300
    Conditions: available for private use
  2. EIM23305
    Meaning of private use and business travel
Exceptions to the car benefit charge: private use prohibited and there is none
  1. EIM23400
    Exceptions: private use prohibited and there is none
  2. EIM23405
    Exceptions - private use prohibited
  3. EIM23410
    Exceptions - no actual private use
Exceptions to the car benefit charge: pooled cars and vans (this section of the guidance also applies to van benefit)
  1. EIM23450
    Exceptions: pooled cars and vans
  2. EIM23455
    Pooled cars and vans: meaning of private use merely incidental to business use
  3. EIM23460
    Pooled cars and vans: de minimis private use
  4. EIM23465
    Pooled cars and vans: meaning of not normally kept overnight
  5. EIM23470
    Pooled cars and vans: difficult cases
  6. EIM23475
    Pooled cars and vans: periodic check of pooled car or van status
  7. EIM23480
    Pooled cars and vans: use of pooled cars by chauffeurs
  8. EIM23485
    Pooled cars and vans: inadequate parking facilities
  9. EIM23490
    Pooled cars and vans: employee carrying secret documents
Exceptions to the car benefit charge: cars and vans for family members (this section of the guidance also applies to van benefit)
  1. EIM23550
    Exceptions: cars and vans for family members
  2. EIM23555
    Car made available to more than one member of family or household employed by the same employer: two charges for one car?
  3. EIM23560
    Car made available to more than one member of a family or household employed by the same employer: primary condition
  4. EIM23565
    car made available to more than one member of family or household employed by the same employer: secondary condition A
  5. EIM23570
    Car made available to more than one member of family or household employed by the same employer: secondary condition B
Exceptions to the car benefit charge: emergency vehicles (this section of the guidance also applies to van benefit)
  1. EIM23600
    Exceptions: emergency vehicles
  2. EIM23605
    Emergency vehicles exemption from 2004/05: conditions 4-5
Special cases: disabled employees
  1. EIM23650
    Special cases: disabled employees
  2. EIM23655
    Special cases: transport between home and work for disabled employees
  3. EIM23660
    Special cases: cars provided for home to work and training travel of disabled employees
Special cases: miscellaneous points
  1. EIM23700
    Special cases: miscellaneous points
Special cases: employees in the motor industry (years to 2008/09)
  1. EIM23750
    Special cases: employees in the motor industry (years to 2008/09)
  2. EIM23755
    Special cases: employees in the motor industry (to 2008/09): frequent changes of car: calculating the car benefit charge
  3. EIM23760
    Special cases: employees in the motor industry (to 2008/09): frequent changes of car: price of notional car
  4. EIM23765
    Special cases: employees in the motor industry (to 2008/09): frequent changes of car: CO2 emissions of notional car
  5. EIM23770
    Special cases: employees in the motor industry (to 2008/09): frequent changes of car: procedures and record-keeping
  6. EIM23775
    Special cases: employees in the motor industry (to 2008/09): special treatment
Special cases: employees in the motor industry (years from 2009/10 onwards)
  1. EIM23800
    Special cases: employees in the motor industry (years from 2009/10)
  2. EIM23805
    Special cases: test and experimental cars (from 2009/10): when is there a car benefit charge?
  3. EIM23810
    Special cases: demonstration and courtesy cars (from 2009/10): when is there a car benefit charge?
  4. EIM23815
    Special cases: employees with frequent changes of car (from 2009/10): “averaging”: introduction
  5. EIM23820
    Special cases: employees with frequent changes of car (from 2009/10): requests for special treatm
  6. EIM23825
    Special cases: employees with frequent changes of car (from 2009/10): averaging process: outline
  7. EIM23830
    Special cases: employees with frequent changes of car (from 2009/10): Averaging Step 1: identify the cars to be subject to averaging
  8. EIM23835
    Special cases: employees with frequent changes of car (from 2009/10): Averaging Step 1: cars without a CO2 emissions figure
  9. EIM23840
    Special cases: employees with frequent changes of car (from 2009/10): Averaging Step 2: group the cars subject to averaging
  10. EIM23845
    Special cases: employees with frequent changes of car (from 2009/10): Averaging Step 3: average price of notional car
  11. EIM23850
    Special cases: employees with frequent changes of car (from 2009/10): Averaging Step 4: average CO2 emissions and appropriate percentage of notional car
  12. EIM23855
    Special cases: employees with frequent changes of car (from 2009/10): Averaging Step 5: benefit charge of notional car
  13. EIM23860
    Special cases: employees with frequent changes of car (from 2009/10): Averaging Step 6: identify qualifying employees at each location
  14. EIM23865
    Special cases: employees with frequent changes of car (from 2009/10): Averaging Step 7: allocate qualifying employees to the notional cars
  15. EIM23870
    Special cases: employees with frequent changes of car (from 2009/10): benefit charge of notional car: example
  16. EIM23875
    Special cases: employees with frequent changes of car (from 2009/10): practical issues
  17. EIM23880
    Special cases: employees with frequent changes of car (from 2009/10): procedures and record-keeping
  18. EIM23885
    Special cases: employees with frequent changes of car (from 2009/10): car fuel benefit
  19. EIM23900
    Special cases: issues relating to electric cars