SE23776 - Car fuel benefit: does not apply to employee's own car

The car fuel benefit only applies to cars which attract a Section 157(1) car benefit tax charge (see SE23750). This means that they do not apply to fuel provided for use in the employee's own car.

Years to 2001/02

The cost of all fuel provided for the employee's own car will be chargeable on the employee and must be entered by the employer on form P11D.

The employee can then claim a deduction under Section 198 ICTA 1988 for the cost of fuel used in journeys which qualify as business travel (see SE32005 onwards).

Years from 2002/03

The Authorised Mileage Allowance Payments (AMAPs) regime took effect from 6 April 2002 and replaced the above arrangements. Full guidance begins at SE31200.

Only the excess over the AMAPs limit need be reported on form P11D.

Deductions are no longer possible under Section 198, but an employee who receives less than the AMAPs limit can obtain Mileage Allowance Relief (MAR, SE31330).

2003/04 onwards

The car fuel benefit has a different basis for these years. See the contents page at EIM23700.