Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Employment Income Manual

From
HM Revenue & Customs
Updated
, see all updates

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
    Car benefit: conditions for the charge to apply
  3. EIM23021
    Guidance on the new legislation on company cars
  4. EIM23025
    Car benefit: scope of the charge
  5. EIM23030
    Car benefit: exceptions
  6. EIM23035
    Car benefit: prohibition on other tax charges where car benefit charge applies
  7. EIM23040
    Car benefit: is an employee chargeable under the benefits code: effect of expenses, etc. paid in connection with a provided car
  8. EIM23045
    Car benefit: expense of a chauffeur
  9. EIM23050
    Car benefit: benefit not otherwise taxable
  10. EIM23055
    Car and car fuel benefits: Class 1A National Insurance contributions payable by employers
  11. EIM23060
    Car and car fuel benefits: 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
    Car benefit: meaning of car: flowchart
  3. EIM23110
    Car benefit: car or van - summary
  4. EIM23115
    Car benefit: vehicle of a construction primarily suited for the conveyance of goods or burden of any description: meaning of construction
  5. EIM23120
    Car benefit: vehicle of a construction primarily suited for the conveyance of goods or burden of any description: meaning of primarily suited
  6. EIM23125
    Car benefit: vehicle of a type not commonly used as a private vehicle and unsuitable to be so used: meaning of type
  7. EIM23130
    Car benefit: meaning of not commonly used as a private vehicle
  8. EIM23135
    Car benefit: meaning of unsuitable for use as a private vehicle
  9. EIM23140
    Car benefit: meaning of unsuitable for use as a private vehicle: emergency vehicles
  10. EIM23145
    Car benefit: off road and multi-purpose vehicles
  11. EIM23150
    Car benefit: double cab pick ups
  12. EIM23155
    Car benefit: other specific types of vehicle
  13. EIM23160
    Car benefit: 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
    Car benefit: meaning of without any transfer of the property in it
  3. EIM23210
    Car benefit: meaning of without any transfer of the property in it: part ownership
  4. EIM23215
    Car benefit: meaning of without any transfer of the property in it: cars leased to director or employee
  5. EIM23220
    Car benefit: transfer of ownership of the car to the employee
  6. EIM23225
    Car benefit: 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
    Car benefit: meaning of by reason of the employment: car made available by the employer
  3. EIM23260
    Car benefit: 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
    Car benefit: 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
    Car benefit: exceptions - private use prohibited
  3. EIM23410
    Car benefit: 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
    Car and van benefit: pooled cars and vans: meaning of private use merely incidental to business use
  3. EIM23460
    Car and van benefit: pooled cars and vans: de minimis private use
  4. EIM23465
    Car and van benefit: pooled cars and vans: meaning of not normally kept overnight
  5. EIM23470
    Car and van benefit: pooled cars and vans: difficult cases
  6. EIM23475
    Car and van benefit: pooled cars and vans: periodic check of pooled car or van status
  7. EIM23480
    Car and van benefit: pooled cars and vans: use of pooled cars by chauffeurs
  8. EIM23485
    Car and van benefit: pooled cars and vans: inadequate parking facilities
  9. EIM23490
    Car and van benefit: 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 benefit: 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 benefit: car made available to more than one member of a family or household employed by the same employer: primary condition
  4. EIM23565
    Car benefit: car made available to more than one member of family or household employed by the same employer: secondary condition A
  5. EIM23570
    Car benefit: 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
    Car benefit: emergency vehicles exemption from 2004/05: conditions 4-5
Special cases: disabled employees
  1. EIM23650
    Special cases: disabled employees
  2. EIM23655
    Car benefit: special cases: transport between home and work for disabled employees
  3. EIM23660
    Car benefit: 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
    Car benefit: special cases: employees in the motor industry (to 2008/09): frequent changes of car: calculating the car benefit charge
  3. EIM23760
    Car benefit: special cases: employees in the motor industry (to 2008/09): frequent changes of car: price of notional car
  4. EIM23765
    Car benefit: special cases: employees in the motor industry (to 2008/09): frequent changes of car: CO2 emissions of notional car
  5. EIM23770
    Car benefit: special cases: employees in the motor industry (to 2008/09): frequent changes of car: procedures and record-keeping
  6. EIM23775
    Car benefit: 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
    Car benefit: special cases: test and experimental cars (from 2009/10): when is there a car benefit charge?
  3. EIM23810
    Car benefit: special cases: demonstration and courtesy cars (from 2009/10): when is there a car benefit charge?
  4. EIM23815
    Car benefit: special cases: employees with frequent changes of car (from 2009/10): “averaging”: introduction
  5. EIM23820
    Car benefit: special cases: employees with frequent changes of car (from 2009/10): requests for special treatment
  6. EIM23825
    Car benefit: special cases: employees with frequent changes of car (from 2009/10): averaging process: outline
  7. EIM23830
    Car benefit: special cases: employees with frequent changes of car (from 2009/10): Averaging Step 1: identify the cars to be subject to averaging
  8. EIM23835
    Car benefit: special cases: employees with frequent changes of car (from 2009/10): Averaging Step 1: cars without a CO2 emissions figure
  9. EIM23840
    Car benefit: special cases: employees with frequent changes of car (from 2009/10): Averaging Step 2: group the cars subject to averaging
  10. EIM23845
    Car benefit: special cases: employees with frequent changes of car (from 2009/10): Averaging Step 3: average price of notional car
  11. EIM23850
    Car benefit: 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
    Car benefit: special cases: employees with frequent changes of car (from 2009/10): Averaging Step 5: benefit charge of notional car
  13. EIM23860
    Car benefit: special cases: employees with frequent changes of car (from 2009/10): Averaging Step 6: identify qualifying employees at each location
  14. EIM23865
    Car benefit: special cases: employees with frequent changes of car (from 2009/10): Averaging Step 7: allocate qualifying employees to the notional cars
  15. EIM23870
    Car benefit: special cases: employees with frequent changes of car (from 2009/10): benefit charge of notional car: example
  16. EIM23875
    Car benefit: special cases: employees with frequent changes of car (from 2009/10): practical issues
  17. EIM23880
    Car benefit: special cases: employees with frequent changes of car (from 2009/10): procedures and record-keeping
  18. EIM23885
    Car benefit: special cases: employees with frequent changes of car (from 2009/10): car fuel benefit
  19. EIM23900
    Special cases: issues relating to electric cars