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HMRC internal manual

Employment Income Manual

Car benefit: special cases: employees with frequent changes of car (from 2009/10): requests for special treatment

In cases where employees in the motor industry have frequent changes of car within EIM23815, two arguments for special treatment are sometimes raised.

Not a regular car

The first is that an additional discount or reduction should be allowed from the charge calculated for the notional car on the grounds are that the employee does not know what car is being made available from day to day, only that a car will be available.

Older cars

The second is that, in second-hand car dealerships, only older cars are available and that charging the full statutory benefit is inequitable.

Comments on both reasons

In neither case is special treatment possible. The reason is simple: the legislation makes no allowance for either scenario. To make such an allowance would compromise the basic principle that this approach is as close to the statutory position as possible and is not intended to result in a lower benefit charge than would be the case if the car benefit were calculated separately for every single car (see EIM23815).

2008/09 and earlier years

This guidance applies only for 2009/10 and later years. Local arrangements applied for years to 2008/09 as described at EIM23750 onwards.