Employees using company fuel for private journeys can sidestep a hefty benefit charge by repaying the full private fuel cost to their employer by 6 July 2025. Miss the deadline, and tax becomes unavoidable.
Company car users may face car fuel benefit charges based on CO2 ratings. Repaying private fuel at advisory rates can help avoid this charge, offering potential tax savings, especially for low private mileage.
Where an employee with a company car is provided with fuel for their own private use by their employers, the default position is that the employee is required to pay the car fuel benefit charge.
Most employers and employees are aware of the additional costs of providing company cars and the tax implications they create. There are circumstances where it can be possible to offer employees car benefits that are exempt from tax.
Whether VAT applies when selling a company car depends on how it was purchased and whether VAT was recovered. Applying the correct rules helps businesses avoid errors and ensures proper VAT treatment.
Some company car benefits can be exempt from tax when strict conditions are met, including business‑only use, adapted vehicles, and pool cars.
Exempt
Learn which taxable company benefits apply to cars, loans, and accommodation, and discover key exemptions.
Choosing an electric company car can cut tax costs dramatically. Lower CO₂ emissions mean BIK rates start at just 3%.
This article explains how to manage the tax implications of using a company car for private travel, including the use of HMRC’s online tool to check and update tax details.
Ensure compliance with HMRC rules when providing company cars. From P46(Car) submissions to benefit reporting, learn what steps to take for private use and specific exemptions.
Where an employee with a company car is provided with fuel for their own private use by their employers, the default position is that the employee is required to pay the car fuel benefit charge.
Report company cars for private use to HMRC using a P46 (Car) form. Notify for new cars or changes. End-of-year reporting includes Class 1A NICs on car benefits. Additional NICs for company-paid private fuel.
HMRC’s updated guidance allows tax-free reimbursement for charging company cars at home, with proof of use required. Stay updated to ensure compliance with the new rules.
There are many benefits to encourage the use of electric cars including tax benefits to encourage the purchase of electric cars.
If you are thinking about purchasing a company car through a limited company, there are many issues that need to be considered. In this short article we will point out some of the main issues to be aware of, but it is important to properly research
Employee benefits: Are you creating tax problems without realising it? From company cars and vouchers to staff parties and reimbursed expenses, many perks trigger reporting duties. Some qualify for exemptions, while others need PAYE or P11D treatment. Review your benefits regularly to avoid HMRC penalties and unexpected tax bills.
VAT fuel scale charges simplify VAT accounting for company cars used privately. They remove mileage tracking and ensure compliance with HMRC rules while promoting low CO₂ vehicles.
Employers must pay Class 1A NICs for 2024-25 benefits by 19 July (post) or 22 July (electronic). These apply to perks like company cars and private health cover late payment risks penalties from HMRC.
Advisory fuel rates for company cars help employers and employees manage fuel costs without triggering tax liabilities. Learn how to use these rates to avoid tax, especially car fuel benefit charges.
Reclaiming VAT on company cars isn’t as simple as it sounds. Generally, businesses can’t recover VAT unless the car is used exclusively for business purposes. But there are exceptions—like taxis, driving schools, and commercial vehicles.
The car fuel benefit rules only apply to company cars that attract a car benefit tax charge. This means the rules do not apply to fuel provided for use in an employee’s own car.
However, employers can pay up to 45p per mile for company related trips
From 6 April 2027, most benefits in kind must be reported through payroll rather than on P11D forms. However, HMRC has confirmed that employers may exclude globally mobile employees, using a new online service expected in November 2026. Here is what the benefit payrolling rules clarified for overseas employees mean for your business.
HMRC's employment tax regime is detailed, frequently updated and actively enforced. Errors are easy to make, and the...
Employers must pay Class 1A NICs for 2025–26 by 19 July 2026 (or 22 July 2026 electronically). Don’t forget to pay your Class 1A NICs on benefits in kind, termination payments and sporting testimonials on time. Discover the key deadlines, reporting requirements and top tips to avoid HMRC penalties in our handy guide.