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HMRC internal manual

Employment Income Manual

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HM Revenue & Customs
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Car fuel benefit: example 4: car partly unavailable and fuel withdrawn

These examples illustrate all the principles summarised at EIM25550. 2004/05 is used, which is not a leap year.

Example: more than one car is available in the year from the same employment

The vehicles are specific to this example. The details are:

  ### Car 1
  ### Car 2
       
       
  Fuel benefit (full year, calculated as for EIM25550) £3,000 £3,600
  Car available from 6 April 2004 1 October 2004
  Car available to 30 September 2004 5 April 2005
  Car unavailable (days) 187 178
  Fuel available from 1 May 2004 1 October 2004
  Fuel available until 30 September 2004 31 January 2005
  Days when car available without fuel being available 25 (6 to 30 April) 64 (1 February to 5 April)

Using the formula at EIM25565, the reduced benefit is:

Car 1

£3,000 x (365 - (187+0)) / 365 = £1,463
 

Car 2

£3,600 x (365 - (178 + 64)) / 365 = £1213
 

Total for the year £1,463 + £1,213 = £2,676

Note: the days when fuel was not provided for Car 1 (6 April to 30 April) are not excluded because the statutory conditions are not fulfilled later in the year (see EIM25570).

The above figures would again apply had Car 1 remained available alongside Car 2, with all other dates unchanged. The fuel benefit for each car is calculated independently.

Years prior to 2003/04

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