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Brian -Brian was provided by his employer with a new car with a list price 15000 on 5 April 2017. The car emits 131 g/km of C02… During 2017/18 the emp;oyer spent 900 on insurance. repairs and a vehicle licence T.he firm paid for all petrol. costing 1,500. without reimbursement. Brian paid the firm 270 for the private use of the car. Calculate the taxable benefits for private use of the car and private fuel.
The answer
Fuel benefit( 22600*.25)=5650. My question is what does the 1500 relate to n what adjustemtns do we need to make?
You have stated above that the £1500 is the fuel cost to the company for which no reimbursement has been made by the employee – hence private fuel is being paid for by the employer so a fuel benefit is computed. The only relevance of the precise amount of £1500 is if for example the question had also stated that private use of the car was 20% and that the employee had reimbursed the 270 for the fuel instead of the car then you would calculate that the private fuel cost paid for by the employer was 1500 x 20% = 300 and therefore a reimbursement of 270 was insufficient to cover the full private fuel cost and thus a FULL fuel benefit would still apply!
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