SE23768 - Car fuel benefit: 2003/04 onwards: withdrawal of free fuel: examples
These examples illustrate the principles at SE23767.
Example 1 - one car available in the year
A car is made available to an employee from 1 June 2004 to 31
January 2005 (245 days). The car is therefore unavailable for 120
days in that tax year.
Provision of free fuel for private use commenced on 1 July
but the facility was withdrawn on 31 December (i.e. 31 days early).
The fuel benefit for the full tax year (calculated per
SE23766) is £1,825.
Fuel benefit charged to this employee is
- £1,825 x (365 - (120 + 31)) / 365 = £1,070.
NB: the days when fuel was not provided for Car 1 (1 June to 30 June) are not excluded because the statutory conditions are not fulfilled later in the year. Only the days from 1 to 31 January meet the statutory conditions, and so are excluded.
Example 2 - more than one car available in the year from the same employment
|
| Car 1 | Car 2 |
| Fuel benefit (full year, calculated per SE23766) | £3,000 | £3,600 |
| Car available from | 6 April 2004 | 1 October 2004 |
| Car available to | 30 September 2004 | 5 April 2005 |
| Car unavailable (days) | 187 | 178 |
| Fuel available from | 1 May 2004 | 1 October 2004 |
| Fuel available to | 30 September 2004 | 31 January 2005 |
| Days when car available without fuel being available | 25 (6 - 30 April) | 64 (1 February - 5 April) |
Fuel benefit charged to this employee is:
- Car 1: £3,000 x (365 - (187 + 0)) / 365) = £1,463.
- Car 2: £3,600 x (365 - (178 + 64))/ 365) = £1,213
- Total for the year = £2,676.
NB: the days when fuel was not provided for Car 1 (6 April to 30 April) are not excluded because the statutory conditions are not fulfilled later in the year.
2003/04 onwards
For full guidance see the contents page at EIM23750CT.
