EIM23000 - The benefits code: cars available for private use to directors and employees not in lower paid employment: brief description: table of contents
A. Introduction to the car benefit charge: how the charge works and what it covers
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Car benefit: general |
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Car benefit: when the charge applies: general |
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Car benefit: exceptions |
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Car benefit: scope of the charge |
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Car benefit: prohibition on other tax charges where car benefit charge applies |
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Car benefit: is an employee chargeable under the benefits code?: effect of expenses, etc. paid in connection with a provided car |
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Car benefit: expense of a chauffeur |
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Car benefit: benefit not otherwise taxable |
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Car and car fuel benefits: Class 1A National Insurance contributions payable by employers |
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Car and car fuel benefits: fair bargain |
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Car benefit: special rules for disabled drivers |
B. Review of the main conditions for the car benefit charge to apply
B1. The vehicle must be a car
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Car benefit: meaning of car |
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Car benefit: meaning of car: flowchart |
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Car benefit: car or van - summary |
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Car benefit: vehicle of a construction primarily suited for the conveyance of goods or burden of any description: meaning of construction |
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Car benefit: vehicle of a construction primarily suited for the conveyance of goods or burden of any description: meaning of primarily suited |
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Car benefit: vehicle of a type not commonly used as a private vehicle and unsuitable to be so used: meaning of type |
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Car benefit: meaning of not commonly used as a private vehicle |
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Car benefit: meaning of unsuitable for use as a private vehicle |
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Car benefit: meaning of unsuitable for use as a private vehicle: emergency vehicles |
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Car benefit: off road vehicles |
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Car benefit: double cab pick ups |
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Car benefit: meaning of car: submissions to Personal Tax |
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Car benefit: emergency vehicles exemption from 2004/05: conditions 1-3 |
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Car benefit: emergency vehicles exemption from 2004/05: conditions 4-5 |
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Car benefit: other specific types of vehicle |
B2. The car must be made available without any transfer of the property in it
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Car benefit: meaning of made available |
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Car benefit: meaning of without any transfer of the property in it - part ownership |
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Car benefit: meaning of without any transfer of the property in it - car leased to director or employee |
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Car benefit: employee car purchase schemes |
B3. The car must be made available by reason of the employee's employment
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Car benefits: meaning of by reason of the employment |
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Car benefits: meaning of by reason of the employment: car made available by the employer |
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Car benefits: meaning of by reason of the employment: car made available by someone other than the employer |
B4. Removal of the car benefit charge when made available to a family member by reason of the employee's employment
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Car benefit: car made available to more than one member of family or household employed by the same employer |
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Car benefit: car made available to more than one member of family or household employed by the same employer: two charges for one car? |
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Car benefit: car made available to more than one member of family or household employed by the same employer: primary condition |
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Car benefit: car made available to more than one member of family or household employed by the same employer: secondary condition A |
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Car benefit: car made available to more than one member of family or household employed by the same employer: secondary condition B |
B5. The vehicle must be available for private use
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Car benefits: meaning of private use and business travel |
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Car benefit: meaning of available |
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Car benefits: prohibition of private use |
C. Calculating the amount of the car benefit charge: introduction
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Car benefit: calculation: introduction |
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Car benefit: calculation: method statement |
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Car benefit: bi-fuel or road fuel gas cars (types B and C) - overview |
C1. Steps 1 to 4 of Section 121 ITEPA 2003: price of the car and accessories
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Car benefits: price of the car: introduction |
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Car benefits: price of the car - step by step guide |
C2. Step 1 of Section 121 ITEPA 2003: price of the car
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Car benefit: price of the car: list price or notional price |
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Car benefit: list price |
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Car benefit: list price: manufacturer, importer or distributor |
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Car benefit: price of the car: imported cars |
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Car benefit: Carbon Offset Charges |
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Car benefit: notional price |
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Car benefit: notional price - particular cars |
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Car benefit: price of the car: exception: cars manufactured to run on road fuel gas |
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Car benefit: price of the car: automatic car for use by a disabled employee |
C3. Step 2 of Section 121 ITEPA 2003: accessories
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Car benefit: accessories: introduction |
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Car benefit: accessory: qualifying accessory (definitions) |
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Car benefit: standard accessory (definition) |
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Car benefit: initial extra accessory, later accessory (definitions) |
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Car benefit: accessory: list price, notional price (definitions) |
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Car benefit: accessory: conditions when determining list or notional price (part 1) |
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Car benefit: accessory: conditions when determining list or notional price (part 2) |
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Car benefit: initial extra accessory with list price quoted by manufacturer, etc. of the car |
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Car benefit: initial extra accessory with list price quoted by manufacturer, etc. of the accessory |
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Car benefit: initial extra accessory with notional price |
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Car benefit: later accessory |
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Car benefit: replacement accessories: general |
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Car benefit: replacement accessories: new accessory not superior to old |
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Car benefit: replacement accessories: new accessory superior to old |
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Car benefit: accessories: exceptions: equipment necessarily provided for use in the performance of the duties |
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Car benefit: accessories: exceptions: equipment for disabled persons |
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Car benefit: accessories: exceptions: cost of converting car to run on road fuel gas |
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Car benefit: accessories: exceptions: miscellaneous |
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Car benefit: accessories: personalised car number plates |
C4. Step 3 of Section 121 ITEPA 2003: capital contributions
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Car benefit: definition and effect of capital contributions |
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Car benefit: capital contributions: the amount deductible |
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Car benefit: capital contributions: years when deduction is allowed |
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Car benefit: repayments of capital contributions |
C5. Classic cars (effect at step 3 of Section 121 ITEPA 2003)
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Car benefit: classic car: definition |
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Car benefit: classic car: market value |
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Car benefit: classic car: capital contributions |
C6. Step 4 of Section 121 ITEPA 2003: price cap for expensive cars
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Car benefit: price cap for expensive cars (to 2010/11 only) |
C7. Steps 1 to 4: examples of calculation
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Car benefit: calculation: steps 1 to 4: list price: example |
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Car benefit: calculation: steps 1 to 4: classic car: example |
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Car benefit: calculation: steps 1 to 4: notional price: example |
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Car benefit: repayments of capital contributions: example |
C8. Step 5 of Section 121 ITEPA 2003: the appropriate percentage
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Car benefit: appropriate percentage: introduction |
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Car benefit: when does a car have an approved CO2 emissions figure? |
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Car benefit: approved CO2 emissions figure: car first registered in the UK from 1 January 1998 to 28 February 2001 |
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Car benefit: finding the approved CO2 emissions figure: car first registered in the UK from 1 March 2001 onwards |
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Car benefit: approved CO2 emissions figure: car first registered in other EU countries |
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Car benefit: approved CO2 emissions figure: car imported from outside the EU |
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Car benefit: approved CO2 emissions figure: more unusual models |
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Car benefit: approved CO2 emissions figure: cases of difficulty |
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Car benefit: car with an approved CO2 emissions figure: overview |
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Car benefit: qualifying low emissions cars (QUALECs) |
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Car benefit: emissions figure to be a qualifying low emissions car (QUALEC) |
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Car benefit: car with an approved CO2 emissions figure: lower threshold |
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Car benefit: appropriate percentage, ready reckoner for petrol-powered cars to 2010/11 (type P) |
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Car benefit: appropriate percentage, ready reckoner for all except electric-only and diesel cars from 2011/12 (type A) |
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Car benefit: car without approved CO2 emissions figure but first registered on 1 January 1998 or later |
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Car benefit: table summarising adjustments to appropriate percentage for different fuels (2002/03 to 2005/06) |
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Car benefit: table summarising adjustments to appropriate percentage for different fuels (2006/07 onwards) |
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Car benefit from 2011/12: adjustments to appropriate percentage and code letter used for different fuels |
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Car benefit: diesel cars up to and including Euro III (type D until 2010/11) |
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Car benefit: Euro IV and Euro 5 diesels (type L to 2010/11) |
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Car benefit: electric cars (type E) |
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Car benefit: hybrid electric/petrol cars (type H) |
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Car benefit: type B cars for years 2002/03 to 2010/11 |
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Car benefit: type C cars for years 2002/03 to 2010/11 |
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Car benefit: type G cars (those manufactured to run on E85 fuel) for years 2008/09 to 2010/11 |
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Car benefit from 2011/12: diesel cars (type D) |
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Car benefit from 2011/12: all cars except types E and D (electric-only and diesel) - type A |
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Car benefit: car with an approved CO2 emissions figure: automatic car for use by disabled employees |
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Car benefit: meaning of automatic transmission |
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Car benefit: car first registered before 1 January 1998 |
C9. Step 6 of Section 121 ITEPA 2003 and examples of steps 5 and 6
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Car benefit: step 6 of the Section 121(1) ITEPA 2003 method statement |
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Car benefit: calculation for 2002/03 to 2010/11: petrol car with approved CO2 emissions figure (type P): example |
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Car benefit: calculation for 2002/03 to 2010/11: diesel car with approved CO2 emissions figure (type D): example |
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Car benefit: calculation for 2002/03 to 2010/11: hybrid petrol/electric car (type H): example |
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Car benefit: calculation for 2002/03 to 2010/11: bi-fuel LPG car with approved gas CO2 emissions figure (type B): example |
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Car benefit: calculation for 2002/03 to 2010/11: bi-fuel LPG car with no approved gas CO2 emissions figure (type C): example |
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Car benefit: calculation for 2002/03 to 2010/11: diesel car approved to Euro IV or Euro 5 limits (type L): example |
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Car benefit: calculation for 2002/03 to 2010/11: car manufactured to run on E85 fuel (type G): example |
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Car benefit: calculation for 2011/12 onwards: diesel car (type D): example |
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Car benefit: calculation for 2011/12 onwards: all cars except types E and D (electric-only and diesel) - type A: example |
C10. Step 7 of Section 121 ITEPA 2003: effect of periods of unavailability on the car benefit charge
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Car benefit: calculation of charge: reduction for periods when car unavailable |
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Car benefit: calculation of charge: reduction for periods when car unavailable: meaning of unavailable |
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Car benefit: calculation of charge: replacement car |
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Car benefit: replacement car: meaning of materially better |
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Car benefit: replacement car: meaning of arrangement |
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Car benefit: reduction because car unavailable: example |
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Car benefit: circumstances when car is unavailable: example |
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Car benefit: circumstances when car is not unavailable: example |
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Car benefit: replacement car: circumstances that do not count as arrangements: example |
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Car benefit: replacement car: circumstances that do count as arrangements: example |
C11. “Step 7A” - actually Section 148 ITEPA 2003: shared cars
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Car benefit: shared car |
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Car benefit: shared car: employees to be disregarded: just and reasonable basis |
C12. Step 8 of Section 121 ITEPA 2003: effect of payments for private use on the car benefit charge
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Car benefit: calculation of charge: deduction for payments for private use of the car |
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Car benefit: calculation of charge: deduction for payments for private use of the car: payments for specific supplies or services |
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Car benefit: calculation of charge: deduction for payments for private use of the car: payments for a more expensive car |
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Car benefit: calculation of charge: deduction for payments for private use of the car: cases of doubt |
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Car benefit: calculation of charge: price of car and accessories, unavailability and payments for private use: example |
D1. Car benefits: miscellaneous points
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Car benefit miscellaneous: transfer of ownership of the car to the employee |
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Car benefit miscellaneous: cars available after employment ceases |
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Car benefit miscellaneous: cars provided for home to work and training travel of disabled employees |
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Car benefit miscellaneous: transport between home and work for disabled employees |
D2. Car benefits: special situations - employees in the motor industry (to 2008/09)
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Car benefit miscellaneous: employees in the motor industry (to 2008/09): when is there a car benefit charge? |
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Car benefit miscellaneous: employees in the motor industry (to 2008/09): frequent changes of car: calculating the car benefit charge |
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Car benefit miscellaneous: employees in the motor industry (to 2008/09): frequent changes of car: price of notional car |
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Car benefit miscellaneous: employees in the motor industry (to 2008/09): frequent changes of car: CO2 emissions of the notional car |
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Car benefit miscellaneous: employees in the motor industry (to 2008/09): frequent changes of car: procedures and record-keeping. |
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Car benefits miscellaneous: employees in the motor industry (to 2008/09): special treatment |
D3. Car benefits: special situations - employees in the motor industry (from 2009/10)
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Car benefit miscellaneous: employees in the motor industry (from 2009/10): when is there a car benefit charge? |
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Car benefit miscellaneous: test and experimental cars (from 2009/10): when is there a car benefit charge? |
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Car benefit miscellaneous: demonstration and courtesy cars (from 2009/10): when is there a car benefit charge? |
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Car benefit: employees with frequent changes of car (from 2009/10) - “averaging” - introduction |
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Car benefit: employees with frequent changes of car (from 2009/10) - requests for special treatment |
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Car benefit: employees with frequent changes of car (from 2009/10) - averaging process: outline |
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Car benefit: employees with frequent changes of car (from 2009/10) - Averaging Step 1: identify the cars to be subject to averaging |
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Car benefit: employees with frequent changes of car (from 2009/10) - Averaging cars without a CO2 emissions figure |
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Car benefit: employees with frequent changes of car (from 2009/10) - Averaging Step 2: group the cars subject to averaging |
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Car benefit: employees with frequent changes of car (from 2009/10) - Averaging Step 3: average price of notional car |
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Car benefit: employees with frequent changes of car (from 2009/10) - Averaging Step 4: average CO2 emissions and appropriate percentage of notional car |
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Car benefit: employees with frequent changes of car (from 2009/10) - Averaging Step 5: benefit charge of notional car |
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Car benefit: employees with frequent changes of car (from 2009/10) - Averaging Step 6: identify qualifying employees at each location |
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Car benefit: employees with frequent changes of car (from 2009/10) - Averaging Step 7: allocate qualifying employees to the notional cars |
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Car benefit: employees with frequent changes of car (from 2009/10) - benefit charge of notional car - example |
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Car benefit: employees with frequent changes of car (from 2009/10) - practical issues |
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Car benefit: employees with frequent changes of car (from 2009/10) - procedures and record-keeping |
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Car benefit: employees with frequent changes of car (from 2009/10) - car fuel benefit |
E. Car fuel benefit, and
F. Pooled cars and vans: special rules that can remove the car and van benefit charges
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Contents page |
