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HMRC internal manual

Employment Income Manual

Car fuel benefit: no fuel for private use: making good car fuel provided for private use

Sections 151 and 152 ITEPA 2003

Where any fuel is provided for a car that attracts a car benefit charge, the car fuel benefit charge will automatically apply (see EIM25510) unless the employee shows that either condition A or condition B in Section 151 ITEPA 2003 is met (see EIM25555).

For the meaning of private use and business travel see EIM23305.

Where the employee is required to make good the cost of all fuel provided for private use this may be done by:

  • payment - that is by paying the employer a sum of money either directly or by deduction from his or her net salary or wages, or
  • reinstatement - that is by replacing fuel provided by the employer (or another person on behalf of the employer) by a corresponding amount of fuel purchased from his or her own pocket, or
  • any combination of the ways described above.

So long as suitable measures are in place to administer this, you can normally accept an employer’s statement:

  • that the employees are required to make good car fuel provided for private motoring and
  • that they actually do so.

For guidance on the use of advisory fuel rates when deciding the amount to be made good, see EIM25655.

From the 2017/18 tax year the latest date for making good the cost of all fuel provided for private use when calculating the fuel benefit charge is by 6 July following the tax year in which the private fuel is provided.