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HMRC internal manual

Employment Income Manual

Car benefit: special cases: employees with frequent changes of car (from 2009/10): Averaging Step 5: benefit charge of notional car

EIM23815 explains why the arrangements described on this page exist and EIM23825 explains how the guidance on them is laid out.

This page follows from Step 4, described at EIM23850.

STEP 5: Calculate the car benefit charge for the notional car in each group

For the notional car in each group, multiply the average price (as determined at Step 3, EIM23845) by the appropriate percentage (as determined at Step 4, EIM23850).


There is an example of Steps 1 to 5 at EIM23870.

Step 6 follows at EIM23860.

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.