A day at the Special Commissioners: Private fuel and company cars

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Private fuel supplied in connection with a company car is taxable as a benefit in kind. What is the position whereby an employee is accidentally reimbursed for private fuel, and the situation is not corrected until the next tax year? The Revenues Employment Income Manual appears to allow concessionary treatment in certain cases. The Special Commissioner did not agree.

The case: Impact Foiling Ltd, M R Flay and G J Plumb v HMRC [2006] SPC 562

Company directors Mr Flay and Mr Plumb had company cars and both purchased all the fuel for the cars personally. They kept a mileage log to record business mileage, and completed monthly expense claims by deducting business mileage from total monthly mileage. The difference was treated as private mileage, and they reduced their claims by 15p per each pri...

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