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HMRC internal manual

Employment Income Manual

HM Revenue & Customs
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Car fuel benefit: meaning of provided

Sections 149 and 151 ITEPA 2003

The car fuel benefit charge applies automatically where by reason of the employment fuel is provided for a car that is made available for private use to an employee who for 2015/16 and earlier is not in an excluded employment (or a member of his or her family or household), see EIM25510.

Without limiting the wide meaning of ‘fuel is provided’ the legislation specifically mentions at Section 149(3) ITEPA 2003 that fuel is to be treated as provided if:

  • any liability in respect of the provision of fuel for the car is discharged, or
  • a non-cash voucher or a credit-token is used to obtain fuel for the car, or
  • a non-cash voucher or a credit-token is used to obtain money that is spent on fuel for the car, or
  • any sum is paid in respect of expenses incurred in providing fuel for the car.

See EIM25520 about claims that the fuel benefit charge is not incurred where employers pay for private fuel through reimbursements which are taxed under PAYE as though they were earnings.

Fuel provided only for business use

The fuel benefit charge applies when any fuel is provided to the employee, even if it is only provided for business use. However, EIM25555 explains that the cash equivalent is nil in these cases.

Years prior to 2003/04

The fuel benefit charge had a different basis in these years.