Where a car is provided to an employee, and private use is permitted, the employee has received a benefit.

The benefit value of a company car is calculated as a percentage of the car’s list price plus any accessories. This percentage is affected by the vehicles carbon dioxide emissions, whether the car is diesel or petrol and the age of the car.

From April 2015 zero emission vehicles are no longer taxable at 0% and so must be reported.

If the charity provides private fuel there will be a further benefit in kind. This is calculated by taking the emissions rating of the car and multiplying this by the base figure for the relevant tax year (£22,200 for 2016/17). The base figures are available on HMRC’s website here.

If employees reimburse the organisation for private fuel for their company car at the advisory fuel rates, or higher, no private fuel benefit will arise.  The advisory fuel rates are available on HMRC’s website here.