A company-provided vehicle gives rise to a fringe benefit where the employer gives permission for their employee to use it for home-to-work travel and other private usage. However, there are some exceptions. The following table provides guidance on a number of common areas of misunderstanding, but is not intended to be exhaustive:
| Situation for consideration | Exempt? | Exception.s? |
| Eligible work-related vehicle | Yes | Any private usage – unless on an emergency call-out. May give rise to a partial exemption |
| Employee calls off in their work-related vehicle to pick their children up from school on the way home | Yes | Incidental use is allowable without giving rise to a fringe benefit. |
| Vehicle parked up when travelling on business | Yes | Private usage on the day of departure and return. May give rise to a partial exemption. |
| Vehicle parked up when on holiday | No | It is still available for use. No adjustment. |
| Vehicle is in the garage being fixed | Yes | Private usage on the day it is taken to the garage (if it can be driven), |
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Web page updated on 17 Mar 2025 14:53