This Chapter applies where during a tax year an authorised employer provides a specified benefit to a specified employee.

An amount determined in accordance with regulation 61D, 61H, 61I, 61J, F661K, 61L or 61LA, as the case may be, is not to be included as a relevant payment for the purpose of calculating whether the deduction of tax would exceed the overriding limit.

An employer will be authorised by HMRC if the conditions set out in paragraph (3) are met.

But in cases falling within paragraph (5), an employer may make an application for authorisation in respect of one or more specified employees during a tax year.

If during the tax year an authorised employer notifies HMRC that the application for authorisation is withdrawn in respect of the specified employees identified in the notification, then the employer will cease to be an authorised employer in respect of those specified employees from the end of the tax year in which that notice is given.

But in cases falling within paragraph (8), where an authorised employer notifies HMRC the application for authorisation is withdrawn in respect of the specified employees identified in the notification, then the employer will cease to be an authorised employer in respect of those employees from the date that the notification is received by HMRC.

Any application or notice must be made to HMRC using an approved method of electronic communication unless the employer is one to whom regulation 67D applies.

For the purposes of this regulation, “Revised Taxable Amount of the Benefit” means the result of the calculation at step 3 of regulation 61I(2), as applied by regulation 61J(2).

Where this Chapter applies an authorised employer must take the following steps—

On making any subsequent main relevant payment in the tax year the authorised employer must add the Taxable Amount of the Benefit to that payment and apply step 5 of paragraph (1) to that amount.

This regulation is subject to regulations 61H, 61I, 61J, F261K, 61L and 61LA(modifications to the general rule).

Where the specified benefit is the provision of a car or a van the cash equivalent F21or relevant amount is calculated in accordance with section 121, 121A, 154A or 155 of ITEPA, as the case may be.

For the purposes of paragraph (1), the authorised employer may take into account payments that the specified employee is required to make in the tax year as a condition of the car or van being available for that employee’s private use.

Where the specified benefit is the provisions of car fuel or van fuel the cash equivalent F23or amount foregone in respect of that benefit is calculated in accordance with section 149A, 150, 160A or 161 of ITEPA, as the case may be.

For the purposes of paragraph (1), the authorised employer may take into account payments that the specified employee is required to make during the tax year in connection with the provision of fuel for that employee’s private use.

Where the specified benefit is F1a non-cash voucher, credit-token or any employment-related benefit the F25cash equivalent or relevant amount of the specified benefit is to be calculated in accordance with section 87, 87A, 94, 94A, 203 or 203A of ITEPA, as the case may be.

This regulation applies instead of regulation 61D(2) if during a tax year the employment of a specified employee ceases but the authorised employer continues to provide the specified benefit to that employee.

This regulation applies instead of regulation 61D(2) if during a tax year there is a change to the specified benefit provided to a specified employee and, for the purposes of calculating the cash equivalent F32, relevant amount or amount foregone in respect of that benefit under ITEPA, that change has effect from the date the revised benefit is provided to the employee.

On making any subsequent main relevant payment in that year, the employer must add the Increased Taxable Amount of the Benefit to, or subtract the Reduced Taxable Amount of the Benefit from, that payment and apply step 5 of regulation 61D(1) to that amount.

Where this regulation applies, regulation 61D(2) no longer applies and regulation 61I applies but with the modification in paragraph (3).

For the purposes of calculating the revised cash equivalent F34, relevant amount or amount foregone of the specified benefit, step 1 of regulation 61I(2) is modified as follows—

Step 1

In cases where regulation 61J(1)(a), (b) or (c) applies, redetermine the cash equivalent F34, relevant amount or amount foregone of the specified benefit in accordance with regulations 61E, 61F or 61G, as the case may be. In cases where regulation 61J(1)(d) applies, use the cash equivalent F34, relevant amount or amount foregone of the benefit determined at the start of the year under step 1 of regulation 61D(1).

Any references in regulation 61I(2) to the revised cash equivalent F35, relevant amount or amount foregone in respect of the benefit or to the amount obtained under step 1 of 61I(2) are to be read in accordance with paragraph (3).

This regulation applies instead of regulation 61D(2) where immediately before the authorised employer makes the final main relevant payment of the tax year the specified employee has not made any or all of the making good payment.

Where this regulation applies the authorised employer may not take into account making good payments for the purposes of calculating the cash equivalent F37, relevant amount or amount foregone in respect of the same specified benefit provided to the same specified employee in the following tax year.

This regulation applies if the specified employee has not made the payment referred to in regulation 61F(2) before 1st June following the end of the tax year (“tax year 1”) in which the specified benefit of car fuel or van fuel was provided.

Before making the first main relevant payment after 1st June following the end of tax year 1 (“the first main relevant payment in tax year 2”) the authorised employer must take the following steps—

Step 1

Redetermine the cash equivalent of the specified benefit of car fuel or van fuel received in tax year 1 in accordance with section 150 or 161 of ITEPA on the basis that Condition A in section 151 or 162 of ITEPA (car fuel and van fuel: nil cash equivalent), as the case may be, has not been met.

The result is the Outstanding Taxable Amount of the Fuel Benefit for Tax Year 1.

Step 2

Add the Outstanding Taxable Amount of the Fuel Benefit for Tax Year 1 to the first main relevant payment in tax year 2 and apply step 5 of regulation 61D(1) to that amount.

Where this regulation applies and the authorised employer is continuing to provide the specified benefit of car fuel or van fuel in tax year 2, the employer must make an in-year adjustment for that year, in accordance with regulation 61J(1)(b), and redetermine the cash equivalent of the specified benefit without taking into account payments the employee is required to make, in connection with the private use of fuel, as referred to in regulation 61F(2).

This regulation applies where the specified benefit is a credit-token and the specified employee has not made all of the making good payments referred to in regulation 61G(2)(b) before 1st June following the end of the tax year (“tax year 1”) in which the credit-token was used.

Where this regulation applies regulation 61G(2)(b) does not apply in respect of credit-tokens used in tax year 2.