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HMRC internal manual

Employment Income Manual

From
HM Revenue & Customs
Updated
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Car fuel benefit: charge not related to cost of providing fuel

The car fuel benefit charge is not related to the actual cost of providing the fuel.

If any fuel is provided for any purpose, the statutory car fuel benefit charge is incurred (see EIM25510). The charge is not reduced at all unless the employee makes good the cost of all the fuel provided for private use. In particular, it is not reduced pound for pound to the extent that the employee makes good the fuel provided (see EIM25650).

Only if the employee makes good the cost of all the fuel provided for private use is the car fuel benefit reduced to nil (EIM25555).

Years prior to 2003/04

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