Expenses and benefits: company cars and fuel

Skip contents

What to report and pay

If the cars you provide are not exempt, you must report them to HM Revenue and Customs (HMRC), and you may have to pay National Insurance on the value of the benefit.

Cars for private use

You’ll need to report this to HMRC separately.

At the end of the tax year, you’ll also need to:

See HMRC’s guidance on car and car fuel benefit for full details of the rules and when they apply.

Fuel for private use

If your employee does not pay you back for the fuel they use privately during the tax year, you’ll need to:

Fuel for volunteer work

You can pay or refund the fuel costs (using the Advisory Fuel Rates) of your employees doing volunteer work.

This is a benefit and you’ll need to either:

Keeping records

You must keep records of all your employees’ expenses and benefits.

You should keep a record of the car’s list price - you’ll need this when you work out the value of the benefit.