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HMRC internal manual

Employment Income Manual

Car benefit calculation Step 2, accessories: exceptions: miscellaneous

Section 125(2)(d) 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.

Extended warranties

Accessories does not include the additional cost of services such as extended warranties that may be purchased at the same time as the car.

Mobile telephones

Mobile telephones do not count as accessories for car benefit purposes. The treatment of mobile telephones available for private use is at EIM21780 onwards. For the treatment of hands-free kits for mobile phones see EIM21781.