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Fuel ― company cars

Produced by Tolley in association with
Employment Tax
Guidance

Fuel ― company cars

Produced by Tolley in association with
Employment Tax
Guidance
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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 E4.629 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

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Philip Rutherford
Philip Rutherford

Senior Tax Director at Molson Coors Brewing Company


Phil is the Senior Tax Director for Molson Coors' European operations. He has responsibility for both direct and indirect taxes across both EU and non-EU states. Prior to this, Phil was responsible for Molson Coors UK tax affairs covering all major taxes and duties.   Phil trained at KPMG LLP, where he worked for 8 years, specialising in tax investigations across both direct and indirect tax.

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