The following guidance relates to fuel purchased for use in an
employee’s privately owned car. For guidance on fuel
purchased for use in a company car see
NIM16170. This guidance applies equally
to all types of fuel, for example petrol and diesel.
Most employers meet the cost of business fuel for employees
required to use their privately owned cars for business purposes.
Some employers also meet the costs of an employee’s private
fuel.
The rules for determining whether a NICs liability arises on
payments for fuel, or on the benefit of providing fuel, depends
on:
The rules and definitions applied to qualifying business travel, including business mileage, are the same for both tax and NICs, see SE32015.
