Car Fuel Benefit Calculation* |
£ |
£ |
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1 |
Ascertain the
car's approved CO2 emissions (same as for car benefit) |
|
gCO2/km |
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per
the V5C document or go to http://carfueldata.direct.gov.uk/search-new-or-used-cars.aspx |
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Rounding
down to the nearest 5g CO2/km, use the ready reckoner at https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/258954/tc2b.pdf |
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to
determine which percentage to apply for the tax year. |
=> %age: |
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Note
special rates apply to zero- and ultra-low emissions cars as per the
reckoner, and a 3% supplement for diesel cars which is due to cease in April
2016. |
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Note
that the 'absolute' cap of 35% of adjusted list price will also increase from
2015/16 up to 37% |
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2 |
Multiply by
the Car Fuel Benefit Charge Multiplier - (£21,700 for 2014/15) |
x |
21,700 |
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This is the
Car Fuel Benefit Charge for a Full Year: |
= |
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3 |
Restrict for
any periods for which car unavailable (same as for car benefit) |
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Restrict
the charge on a time basis for periods: |
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Prior
to its first being made available in the tax year |
+ |
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After
it was permanently withdrawn in the tax year |
+ |
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Or
an intervening period of not less than 30 consecutive days for which it was
unavailable (e.g., for repairs) - assuming no replacement car provided |
+ |
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- |
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4 |
Reduction for
permanent withdrawal of private fuel |
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For
periods where the car is unavailable AND fuel has been withdrawn, there
should be only one proportionate reduction. Note that if private fuel is
re-introduced later in the year, there is NO restriction under this heading. |
- |
|
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5 |
Apportion
benefit if the vehicle is shared (same as for car benefit) |
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Where
two or more employees share the car over the same period, then the benefit in
kind should be restricted for each on a just and reasonable basis,
effectively apportioning the annual benefit between users. See EIM25575 |
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Adjusted car
fuel benefit for the tax year |
= |
|
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*For cars with UK manufacturers' list price and approved emissions,
registered from March 2001. See also EIM25500 et seq. |
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Van benefit calculator |
£ |
£ |
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Remember that private use has to be
"significant" to trigger a van benefit charge |
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1 |
Van benefit
charge for the full tax year (£3,090 for 2014/15) |
3,090 |
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Note
that "zero-emissions vans" - which cannot produce CO2 at
all - have £0 benefit in kind for 2014/15, rising to the full rate over the
next few tax years - see EIM22790 |
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2 |
Reduction for
period(s) van was unavailable |
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Restrict
the charge on a time basis for periods: |
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Prior
to its first being made available in the tax year |
+ |
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After
it was permanently withdrawn in the tax year |
+ |
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Or
an intervening period of not less than 30 consecutive days for which it was
unavailable (e.g., for repairs) - assuming no replacement van was provided |
+ |
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- |
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3 |
Apportionment
if the van has been shared |
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Where
the van has been shared (and made available for private use) concurrently
between employees, then the charge should be apportioned between them - each
employee getting a reduced benefit - on a just and reasonable basis. Note that HMRC objects to reducing one
employee's private use where the co-sharer employee's private use is not
significant (see EIM22830) so essentially the benefit must be shared rather
than simply reduced. |
- |
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4 |
Reduction
where employee pays for private use |
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The
benefit is reduced pound for pound, where the employee pays for the private
use of the van. Note that the payment must be required - it cannot be
voluntary. It can reduce the benefit to nil. |
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- |
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Adjusted van
benefit for the tax year |
= |
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Van fuel benefit calculator |
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Again assumes private van use more than
"insignificant" and private fuel provided |
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1 |
Full annual
van fuel benefit (£581 for 2014/15) |
581 |
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2 |
Restrict for
any periods for which van unavailable (same as for car benefit) |
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Restrict
the charge on a time basis for periods: |
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Prior
to its first being made available in the tax year |
+ |