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FBT Q&A – Exempt vehicles and PCG 2018/3

Are the PCG 2018/3 guidelines compulsory? If not, what records need to be kept?

Question

A dual/crew cab 4×4 has been made available to an employee for private use. The vehicle meets the definition of qualifying for the work-related use exemption as per MT 2024, paragraph 8b.

To comply with the private use restrictions being limited to:

  • travel between work and home;
  • travel that is incidental to travel in the course of employment duties;
  • non-work-related use that is minor, infrequent and irregular,

is it compulsory that the requirements listed in PCG2018/3 paragraph 6 be adhered to?

If not, what records need to be kept?

Answer

The PCG 2018/3 guidelines are not compulsory.

If you choose not to apply these guidelines you may still be eligible for the FBT exemption. However, you will need to maintain sufficient documentary evidence to support the ‘minor, infrequent and irregular’ usage requirement.

There are no special records or guidelines required to be eligible for this exemption. However, you must be able to demonstrate that the use of the vehicle meets the eligibility criteria at all times.

We would recommend that an internal policy be documented and circulated to staff so they are aware of the limit to private usage. Importantly, the policy should be enforced by regularly comparing the opening and closing odometer readings of the vehicle with the total distance which you expect the employee to travel between home and work during that particular period.

 

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