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HMRC internal manual

Employment Income Manual

Car benefit calculation Step 2, accessories: exceptions: equipment necessarily provided for use in the performance of the duties

Section 125(2)(a) ITEPA 2003

Before reading the guidance that follows this paragraph, ensure that you are familiar with:

  • the method statement in Section 121(1) ITEPA 2003, see EIM24015 (this page concerns step 2)
  • the general introduction to the treatment of accessories at EIM24200.

Accessory does not include equipment that is necessarily provided for use in the performance of the duties.

An example would be a tow bar fitted as an option to a car because part of the employee’s job is to tow a trailer carrying the equipment needed to carry out his or her duties. The price of the tow bar will not be included in the price of the car and so it will not be taxable as a benefit.

The necessarily test should be applied in the same way as for capital allowances (see EIM36540), even though employees can no longer claim capital allowances on cars after the introduction of the Mileage Allowance Payments (AMAPs) legislation (see EIM31200). It is not sufficient that the accessory be merely helpful.


Any accessories that meet the conditions are disregarded at step 2.