Part 3Employment income: earnings and benefits etc. treated as earnings
Chapter 11Taxable benefits: exclusion of lower-paid employments from parts of benefits code
What is lower-paid employment
219Extra amounts to be added in connection with a car
1
The provisions of this section apply for the purposes of section 218(1) in the case of a tax year in which a car is made available as mentioned in section 114(1) (cars, vans and related benefits) by reason of the employment.
2
Subsection (3) applies if in the tax year—
a
an alternative to the benefit of the car is offered, and
b
the amount that would be earnings within Chapter 1 of this Part if the benefit of the car were to be determined by reference to the alternative offered exceeds the benefit code earnings (see subsection (4)).
3
The amount of the excess is an extra amount to be added under step 2 in section 218(1).
4
For the purposes of subsection (2) “the benefit code earnings” is the total for the year of—
a
the cash equivalent of the benefit of the car (calculated in accordance with Chapter 6 of this Part), and
b
the cash equivalent (calculated in accordance with that Chapter) of the benefit of any fuel provided for the car by reason of the employment.
5
Subsection (6) applies if in the tax year there would be an amount of general earnings consisting of—
a
earnings within Chapter 1 of this Part, or
b
an amount treated as earnings from the employment under Chapter 3 (expenses payments) or Chapter 4 (vouchers and credit-tokens) of this Part,
if section 239 or 269 (exemptions in respect of payments or benefits connected with taxable cars etc.) did not apply to the discharge of a liability, or to a payment or benefit, in connection with the car.
6
The amount of general earnings mentioned in subsection (5) is an extra amount to be added under step 2 in section 218(1).
7
Section 216(1) (provisions not applicable to lower-paid employment) is to be disregarded for the purpose of determining any amount under this section.