 Fuel
provided for your employee's private use
There is a separate charge on the benefit of free fuel you
provide for private motoring in a company car, for example
from your own pumps or by paying for, or reimbursing, the
cost of fuel. As an employer you may also be liable to pay
Class 1A National Insurance contributions on the benefit of
the free fuel. The value of the benefit for both income tax
and National Insurance contributions purposes, is based on
the engine size of the car and whether it is petrol or diesel
powered. The current (1993-94) figures are
| petrol engines |
diesel engines |
- up to 1400cc = £600
- 1401cc to 2000cc = £760
- over 2000cc = £1,130
|
- up to 2000cc = £550
- over 2000cc = £710
|
There is a further band for cars without an engine capacity,
for example rotary engined cars.
The full scale charge applies if any free fuel is provided
for private use, but the charge is reduced to nil if the employee
makes good the cost of all fuel provided for private motoring.
|
