Car benefit: is an employee chargeable under the benefits code: effect of expenses, etc. paid in connection with a provided car
Section 218 ITEPA 2003
Expenses, etc in connection with a provided car which are paid in any of the three ways shown in bullets in EIM23035 have to be taken into account in the calculation of the earnings rate for a year if it is necessary to determine whether an employment is lower-paid employment under Section 216 ITEPA 2003.
The earnings rate determines whether or not an employee is chargeable under the benefits code (for 2015/16 and earlier an employee in an excluded employment, see EIM20007, is not).
This is so even though the expenses, etc themselves are not separately chargeable to tax.
EIM20105 gives an example of how this works in practice.