Car fuel benefit - apportionment?

Car fuel benefit - apportionment?

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A company car and private fuel is provided for employee - can the fuel benefit be appoptioned if private fuel ceases to be provided from 1/12/2001? So car and fuel benefit to 30.11.2001 and car benefit only from that date? The IR leaflet 480 refers to an all or nothing charge - but does not appear to deal with this aspect.

Kevin Salter

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By AnonymousUser
29th Nov 2001 21:19

Change the car
If you are desperate to escape the fuel benefit in mid-year, there is a way. The fuel benefit attaches to the car. If you change cars, you can drop the free use of private fuel at the date of change and you will only face a partial fuel benefit.

You don't say whether the car is the only one in the company or there is a big fleet. If the latter, you could swap for a similar model with a willing colleague and drop the fuel benefit at the time of the change. Or ask the boss for a new motor ;0)

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By AnonymousUser
28th Nov 2001 14:56

Unfortunately the answer is no
The car fuel benefit can be reduced (S158 (5)ICTA 1988). However, the reduction is given by reference to periods when there is no car benefit charge.

So if the company withdraws the car on 6 October the employee will be subject to tax on one half of the scale charge. If the company no longer provides private fuel after 6 October, but continues to provide the car, the full fuel scale charge applies.

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