Expenses and benefits: company cars and fuel
Work out the value
You can work out the value of cars and fuel using online tools from HM Revenue and Customs (HMRC) or your payroll software.
You can work out the value manually on the P11D working sheet 2. Use this method if both of the following apply:
- the car was unavailable for at least 30 consecutive days during the tax year
- you were providing fuel for private use, but stopped doing this
You can use advisory fuel rates to work out mileage costs in some situations, eg if you pay an employee back for fuel they’ve used for business travel.
You have to pay employers’ National Insurance on some motoring costs if they’re considered employee benefits, eg parking permits, drivers, toll bridge fees and congestion charges. You do not pay it on running costs like servicing and insurance.
Cars adapted for an employee with a disability
Special rules apply when calculating the value of these cars if they’re available for private use. This does not include:
- journeys between home and work
- travel to work-related training
For HMRC’s guidance on car benefits for disabled drivers, see sections 12.7, 12.15 and 12.30 of Expenses and benefits - a tax guide.
Salary sacrifice arrangements
If the cost of the cars and fuel is less than the amount of salary given up, report the salary amount instead.
These rules do not apply to arrangements made before 6 April 2017 - check when the rules will change.