10 |
It has since been held that where employees could, and did, use a non-chargeable method of obtaining a benefit, the fact that they could have chosen a different method which could have resulted in a tax liability was itself enough to give rise to such a liability.27 They used their company’s credit card to pay for petrol but could instead have paid in cash and obtained a refund; by refraining from using the card they had turned the benefit to pecuniary account. Today, the fuel charge applies generally to such facts, but this does not disturb the principle. |
15A.2.3.2 Legislative Modifications for Cars and Accommodation |
Where a car is made available to the employee under part 3 chapter 6 (section 120) and an alternative to that benefit is offered, the mere fact that the alternative is offered does not make the benefit of the car chargeable to tax under these general principles.28 The effect is that the employee will be taxed on the benefit chosen. The reason behind this apparently anodyne piece of legislation is to ensure that NICs are not avoided.29 |
On accommodation see below §15A.4.1. |