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Introduction

When an employer provides fuel for a company car, a taxable benefit is likely to arise. The taxable benefit is specifically known as the fuel benefit charge. The fuel benefit charge arises in addition to the company car taxable benefit, see the Company cars guidance note.

Detailed guidance on each of the following sections to cover specific circumstances is available at Simon’s Taxes E4.621 and from HMRC at EIM25500 onwards.

The definition of ‘provided’ stated in the legislation is very broad. Fuel is treated as having been provided if any of the following applies:

1. •

   any liability in respect of the provision of fuel for the car is paid directly by the employer (eg by settlement of an invoice)

2. •

   a non-cash voucher or credit token (such as a fuel card) is used to obtain fuel

3. •

   a non-cash voucher or credit token is used to obtain money to pay for fuel, or

4. •

   the employer reimburses the employee any sum for the cost of fuel

ITEPA 2003, s 149(3)

HMRC provides