EIM22945 - Van fuel benefit from 2005 to 2006: making good

Sections 163 ITEPA 2003

The van fuel benefit charge is incurred as detailed at EIM22900; there is an example at EIM22980.

Making good

Where the employee is required to make good the cost of all fuel provided for private use (condition A at EIM22920) this may be done by:

• payment: that is, by paying the employer a sum of money either directly or by deduction from his or her net salary or wages
• reinstatement: that is, by replacing fuel provided by the employer (or another person on behalf of the employer) by a corresponding amount of fuel purchased from his or her own pocket
• any combination of the ways described above

So long as suitable measures are in place to administer this, you can normally accept an employer’s statement that the employees are required to make good fuel provided for private motoring and that they actually do so.

From the 2017 to 2018 tax year, the latest date for making good the cost of all fuel provided for private use when calculating the van fuel benefit charge is by 6 July following the tax year in which the private fuel is provided.

Belated making good

The guidance at EIM25660 applies to van fuel benefit as it does to car fuel benefit.

Advisory fuel rates

These rates (see EIM25655) cannot be used in relation to vans as this is not one of the uses specified on the HMRC website. This is because they were not calculated in relation to vans but from the average fuel consumption for the most popular fleet cars.