EIM23006 - Car benefit: is an employee chargeable under the benefits code: effect of expenses, etc. paid in connection with a provided car

Section 218 ITEPA 2003

Expenses, etc in connection with a provided car, which are paid in any of the three ways described in the fourth sub-paragraph of EIM23005, have to be taken into account in the calculation of the earnings rate for a year that is required by Section 216 ITEPA 2003.

The earnings rate determines whether or not an employee is chargeable under the benefits code (an employee in an excluded employment, see EIM20007, is not).

This is so even though the expenses, etc themselves are not separately chargeable to tax.

EIM20105 gives an example of how this works in practice.