The petrol card fringe benefit arises where an employer funds an employee's fuel through a petrol or garage card. Because some of that fuel is for private travel, part of the value is taxed.
What it means
Employer-funded fuel is treated much like a travel allowance: 80% of it is included for PAYE, on the assumption that at least a fifth is business travel. The inclusion drops to 20% where the employer is satisfied that most of the travel is for business. The employee can claim further relief on assessment against a logbook.
Where it fits in
The benefit is a fringe-benefit component, with the included portion added to the PAYE base each period. It interacts with travel allowances and the company car benefit, so an employee should not be double-counted across them. It is reported under the relevant IRP5 source code.
Key rules
- Taxes employer-funded fuel, typically at 80% inclusion for PAYE.
- Inclusion can drop to 20% where business use predominates.
- Further relief is claimed on assessment against a logbook.
- Coordinated with travel allowances and the company car benefit to avoid double-counting.
