EIM25615 - Car fuel benefit. Example 4: car partly unavailable and fuel withdrawn

These examples illustrate all the principles summarised at EIM25550. 2004 to 2005 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:

Description Car One Car two
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 April to 30 April) 64 (1 February to 5 April)

Using the formula at EIM25565, the reduced benefit is:

Car one:

  • £3,000 × (365 - (187+0)) ÷ 365 = £1,463

Car two:

  • £3,600 × (365 - (178 + 64)) ÷ 365 = £1,213

Total for the year:

  • £1,463 + £1,213 = £2,676

Note: the days when fuel was not provided for car one (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 two, with all other dates unchanged. The fuel benefit for each car is calculated independently.

Years prior to 2003 to 2004

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