# Introduction. How company cars are taxed. Calculating the cash equivalent

Save this PDF as:

Size: px
Start display at page:

Download "Introduction. How company cars are taxed. Calculating the cash equivalent"

## Transcription

1 Introduction Company cars remain a popular employment-related benefit despite the generally high income tax charges on them. The tax charge on company cars cars provided to employees by their employers and available for private use is based primarily on the cost of the car and its carbon dioxide (CO 2 ) emissions. The rules are designed to favour cheaper cars with lower CO 2 emissions. Many directors and employees do not have company cars, but use their own vehicles for business purposes. There are set rates, regardless of engine size, at which an employer can reimburse such employees without triggering a tax liability. Where an employee is provided with a company car but is responsible for providing the fuel, HM Revenue & Customs (HMRC) publishes mileage rates that can be used for agreeing dispensations in respect of reimbursed business mileage for company car drivers. This section explains the main rules and the factors to be considered in deciding between a company car and a car owned by the employee personally. All references to employees can be taken to include directors. How company cars are taxed The benefit of having a company car available for private use is taxed by reference to a notional amount of taxable extra income, known as its cash equivalent value. The employee pays tax on the cash equivalent at his or her marginal rate. The employer is liable to Class 1A national insurance contributions (NICs), but there is no liability to employee NICs. The benefit of a company car is only taxable where a car is provided to a P11D employee or a director. However, the cash equivalent value of the car (and any other benefits provided to the employee) is taken into account in determining whether the employee earns at a rate of at least 8,500 a year. For example, if the cash equivalent of a car is calculated as 5,000, then an employee who pays income tax at the higher rate of 40% will have a tax liability of 2,000. The employer will have a NIC liability of 690 ( 5, %) (2012/13 rate). Calculating the cash equivalent There are four steps to calculating the cash equivalent of a company car. 1. Establish the price of the car for tax purposes. This is essentially the list price of the car plus the price of any optional accessories. Any capital contributions made by the employee (up to a maximum of 5,000) are deducted from the list price. 2. Multiply the list price (as adjusted for capital contributions and accessories) by the appropriate percentage to produce the car s cash equivalent. This percentage is determined by the car s CO 2 emissions. 3. If necessary, reduce the cash equivalent for periods when the car was not available to the employee for part of the tax year. 4. Make an adjustment for any contribution made by the employee for the private use of the car. List price The starting point of the calculation is the price of the car. This is the car s list price, including delivery charges, rather than the actual amount the employer paid for it. Where an employer has bought a car at a discount from the list price, it is important to keep records of both the actual price paid and the list price. All Rights Reserved Page 1 of 13

2 The list price is used in calculating the taxable cash equivalent of the benefit in kind. The actual price is relevant for capital allowances purposes. The list price of a car is the one published by the manufacturer (or sometimes the importer or distributor) for a retail sale of the car in the UK. The relevant list price is the one published for the vehicle on the day before its first registration, regardless of the age of the car, or whether it was bought new or second-hand. It includes value added tax (VAT) as well as any customs or excise duty, whatever the VAT status of the employer. Accessories, such as air conditioning or special wheels, are not included in the basic list price. The tax rules regarding their treatment are complex, but in most cases the costs of any optional accessories attached to the car must be added to the list price of the car. Accessories that come as standard can be ignored. The cost of mobile telephones is not included. Also from 6 April 2011, certain security enhancements are ignored where the employee s job poses a threat to his or her personal security. If the employee has made a capital contribution towards the cost of the car, the amount, up to a maximum of 5,000, is deducted from the list price. The cash equivalent calculation is now based on the full list price. For 2010/11 and earlier years, the list price of company cars (after deducting any capital contributions) was capped at 80,000. Where a car is at least 15 years old, its open market value (less any capital contribution) is substituted for the list price if the car is valued at 15,000 or more, as long as this value is higher than the list price. CO 2 emissions The next stage in calculating the taxable cash equivalent of a company car is to apply the appropriate percentage to the list price. For cars first registered after 31 December 1997, the appropriate percentage is normally determined by the level of the car s CO 2 emissions. A higher level of emissions leads to a higher taxable cash equivalent. CO 2 figures are available at the Society of Motor Manufacturers and Traders Ltd website (https://www.smmt.co.uk/members-lounge/member-services/ market-intelligence/vehicle-data/co2-emissions-data/) and are shown on vehicle registration documents for cars registered from 1 March The relevant threshold For 2012/13 and later years, a relevant threshold of grams of CO 2 emissions per kilometre is set for each tax year. The relevant threshold is set at 100g/km for 2012/13 and at 95g/km for 2013/14. The appropriate percentage is set by reference to the relevant threshold. If the car s CO 2 emissions (rounded down to the nearest 5g/km) equal the relevant threshold, the appropriate percentage is 11%. This means that for 2012/13, cars with CO 2 emissions of 100g/km have an appropriate percentage of 11% and for 2013/14 cars with CO 2 emissions of 95g/km also have an appropriate percentage of 11%. Where CO 2 emissions exceed the relevant threshold, the appropriate percentage is increased by 1% to a maximum of 35% for each 5g/km increase in CO 2 emissions. In determining the appropriate percentage, if the actual CO 2 emissions figure is not a multiple of five it is rounded down to the nearest 5g/km. Where the CO 2 emissions are below the relevant threshold, if the car is a very low emissions car (i.e. one with actual CO 2 emissions of 75g/km or less), the appropriate percentage for 2012/13, 2013/14 and 2014/15 is 5%. Where the car s CO 2 emissions are more than 75g/km and less than the relevant threshold, then for 2013/14 and 2014/15 the appropriate percentage is 10%. An appropriate percentage of zero applies to zero emission cars. All Rights Reserved Page 2 of 13

3 Example 18.1 Below the relevant threshold but over 75g/km An employee drives a petrol car with a list price of 10,000 for the whole of the tax year 2012/13. The CO 2 emissions figure for the car is 90g/km. As this is below the relevant threshold of 100g/km, but more than 75g/km, the appropriate percentage is 10% and the cash equivalent of the benefit is 1,000 ( 10,000 10%). The employee will pay income tax on the cash equivalent value of 1,000. For a 40% taxpayer, this equates to a tax bill of 400. The employer will pay Class 1A NICs (at 13.8%) on the same figure of 1,000. For 2011/12 and earlier tax years, a lower threshold was set. Where the CO 2 figure (as rounded down) was not more than the lower threshold, the appropriate percentage was 15%. Where the CO 2 emissions figure exceeded the lower threshold, the basic percentage of 15% rose by 1% for each additional 5g/km of CO 2 emissions to a maximum charge of 35%. A rate of 10% applied to cars with CO 2 emissions of 120g/km or less but more than 75g/km (known as QUALECs). A 5% rate applied to ultra low emission cars. Ultra low emission cars From 6 April 2010, for a period of five years a lower rate of 5% applies to cars with actual (unrounded) CO 2 emissions of 75g/km or less. The Government has announced that the appropriate percentage for all cars emitting less than 95g/km will be set at 13% for 2015/16 and will rise by 2% to 15% from 2016/17. Zero-emission cars From 6 April 2010, for five years no charge (an appropriate percentage of 0%) applies in relation to cars, including electric-only cars, which are not capable of producing CO 2 engine emissions in any circumstances. The Government has announced that the appropriate percentage for all cars emitting less than 95g/km, including zero-emission cars, will be set at 13% for 2015/16 and will rise by 2% to 15% from 2016/17. Upper limit A cap applies to limit the amount of the car s list price which is charged to tax, regardless of the level of the car s CO 2 emissions level. The cap is set at 35% and for 2012/13 applies to cars with CO 2 emissions of 220g/km and above. The Government has announced that the maximum charge is to be increased to 37% from 2016/17. Diesel cars Diesel cars are subject to a supplement of 3%, meaning that diesel cars are taxed on 3% more of their list price as compared to a petrol car with equivalent CO 2 emissions. However, the cap on the maximum charge applies equally to diesel cars and the 3% supplement cannot take the charge above the maximum charge, currently 35%. For 2012/13 this applies to diesel cars with CO 2 emissions of 205g/km and above. The Government has announced that the diesel supplement is to be removed from April This means that for 2016/17 and subsequent tax years the appropriate percentage of diesel cars will be the same as for a petrol car with equivalent CO 2 emissions. The maximum charge is to be increased to 37% from the same date. All Rights Reserved Page 3 of 13

4 Emissions table The following table gives the taxable percentage of list price by emissions level: Car benefit charges for cars with an approved CO 2 emissions figure All Rights Reserved Page 4 of 13

5 CO 2 emissions in grams per km Percentage of car s price to be taxed 2013/14 Petrol (%) Diesel (%) Zero g/km or less 5 8 Less than 100 but more than 75g/km or more Cars at least 15 years old by the end of a tax year and valued at 15,000 or more are taxed All Rights Reserved Page 5 of 13

6 at the appropriate percentage of market value. Future years For 2013/14 the relevant threshold is reduced to 95g/km. A charge of 10% applies to cars with CO 2 emissions (as rounded down to the nearest 5g/km) equal to the relevant threshold. The charge is increased by 1% for every 5g/km to a maximum of 35%. For 2013/14 the maximum charge applies to petrol cars with CO 2 emissions (as rounded) of 215g/km and diesel cars with CO 2 emissions of 205g/km. Cars with CO 2 emissions of less 95g/km but more than 75g/km attract a charge of 5% and the zero charge applies to zero-emission cars. For 2014/15 the appropriate percentage for cars emitting more than 75g/km is increased by 1%. This means that for 2013/14 a charge of 11% will apply to cars with CO 2 emissions (as rounded down) equal to the relevant threshold of 95g/km. Thereafter the charge increases by 1% for every 5g/km increase in CO 2 emissions to a maximum of 35%. The 5% charge applies to cars with CO 2 emissions of 75g/km or less and a zero charge applies to zero-emission car. Diesel cars are subject to a 3% supplement and the maximum charge is 35%. In both 2015/16 and 2016/17 the appropriate percentages are increased by 2% and the maximum charge is increased to 37%. The reduced rates for ultra low and zero-emission cars come to an end on 5 April 2015, and for 2015/16, an appropriate percentage of 13% applies to all cars with CO 2 emissions below the relevant threshold of 95g/km. This is increased to 15% from 2016/17. The diesel supplement is to be removed from 6 April Older cars The percentage is determined in a different way for cars first registered before 1 January For these older vehicles, the taxable benefit is based on engine size (with no differential between petrol and diesel cars). The appropriate percentages are: Up to 1,400cc 15% 1,401cc to 2,000cc 22% Over 2,000cc 32% Cars with no CO 2 figures A few cars registered since the start of 1998 do not have an official CO 2 emissions figure. In these cases, too, it is necessary to look at engine size, but this time with a differential for many diesel cars. The taxable percentages are: Petrol Diesel Up to 1,400cc 15% 18% 1,401cc to 2,000cc 25% 28% Over 2,000cc 35% 35% Other adjustments After calculating the taxable percentage of the list price, adjustments must be made if the car is unavailable for any period or if the employee contributes towards the costs of running the car. All Rights Reserved Page 6 of 13

8 employee of a company car is worth the benefit depends mainly on the amount of private use. The introduction of lower charges for low and very low emission vehicles has made it possible to provide company cars at a lower tax cost. From 6 April 2010 until 5 April 2015 it is even possible to provide a company car tax free provided that the car in question meets the definition of a zero-emission car (essentially an electric-only car). However, the charge will increase to 13% from April Private mileage The following examples show how the tax cost is related to private mileage. For others a company car can indeed be a valuable benefit. Providing modest cars to staff with high private mileage can be very attractive. Example 18.2 The high business/low private mileage driver Sarah covers 25,000 business miles a year as a sales rep. Because she drives so much in her work, she prefers to avoid long car journeys away from work, so she only covers 2,000 private miles a year. She drives a two-year-old car with a list price of 20,000. It is a petrol-driven car with an emissions figure of 242g/km. The fuel emissions from her car exceed the maximum figure of 225g/km on the scale, and she will therefore pay tax on a cash equivalent value for the car of 7,000 ( 20,000 x 35%). If she is a 40% taxpayer, this is a cost to her of 2,800 for which she gets the benefit of 2,000 miles of private motoring, although she still has to pay for her petrol, which the cash equivalent does not cover. At 1.40 a mile for the car alone, this may seem a somewhat expensive benefit, especially as it does not even take into account the costs to the employer of providing the car and the employer s NICs of 966 ( 7, %). However, according to the AA, someone owning a 20,000 car and driving 5,000 miles a year would face total standing charges and running costs of over 1.30 a mile. Example 18.3 The high private mileage driver David has an office-based job 60 miles away from his home. His main use of his vehicle is to get to and from work each day (such journeys do not count as business mileage for tax purposes). He chooses a diesel car with a list price of 10,000 and CO 2 emissions of 120g/km. His annual business journeys amount to only about 1,000 miles. David is rewarded for driving a fuel-efficient car and the taxable cash equivalent is 1,800 (18% for a diesel vehicle (15% for car with CO 2 emissions of 120g/km for 2012/13 plus the 3% supplement)). The cost to him, if he is a 40% taxpayer, is therefore 720, which covers all the costs except fuel for the 27,000 or so miles he travels to and from work in a year. This equates to only 7.2p per mile. Reducing the tax charge There are several options for employees faced with a high tax liability, although most are not particularly attractive. The following could be considered: An electric car can be provided as a tax-free benefit until April A lower emission car and/or a cheaper model will reduce the cash equivalent. Cars with CO 2 emissions of less than 75g/km are only taxed on 5% of the list price until April All Rights Reserved Page 8 of 13

11 The employer s perspective Sarah s employer would have to pay her 8,250 for business mileage, but would save all the running costs of the vehicle and the Class 1A NIC charge on the benefit of the car ( 966 for 2012/13). Sarah would no longer have the benefit of an employer-funded car for her private use and her employer would probably pay her additional salary as compensation for this loss. Once this figure is agreed, it is possible to consider the income tax, corporation tax, NIC and VAT issues, and to reach a decision over whether the car is better provided by the employer or not. In practice, many employers choose to compare the cost to the company of providing a car or paying salary instead. If a consistent cost to the employer can be maintained in both calculations, then it is possible to look at the employee position to determine the best approach overall. Choosing between a company car and a privately owned car involves many subjective as well as financial issues, including: Cash flow for both employer and employee. Corporation tax, income tax, VAT and national insurance considerations. Administration costs of running a car fleet. Buying power, discounts, group insurance policies, etc. Employer control over the types of cars driven by employees. The fact that an employee who has been covered by an employer s car insurance might not qualify for any no claims bonus on a new private policy, although many insurance companies do make concessions for ex-company car drivers. The need for accurate records of business mileage driven in private cars but not in company cars (unless business fuel, but not private fuel, is reimbursed). Making the transition Making the switch from company car to personal ownership can cause difficulties. One approach is simply to transfer the car from the employer into the personal ownership of the director or employee. The employee will then be taxed on the market value of the vehicle at the time of transfer, unless the employee pays for the car. For example, an employee might be driving a company car with a list price of 20,000 that actually cost the employer 18,000 and is now worth only 10,000. If the employer transfers it to the employee without charge, the employee will be taxed on 10,000, the market value at the time of transfer. Alternatively, the employee could pay all or part of the full market value for the car. The payment will reduce the amount on which the employee is taxed (although the total cost to the employer will be higher). The employer could make a loan to the employee to help finance the purchase. There will be no tax charge as long as the total of all loans from the employer to the employee does not exceed 5,000 at any time in the tax year. Larger loans would mean that the employee would face a tax liability if the loan were interest-free or at a low rate (less than 4% in 2012/13). If the employee is a shareholder, a loan might also give rise to a tax charge on the employer, and where a company makes a loan to a director, there could be company law issues to consider. All Rights Reserved Page 11 of 13

13 Some employees will prefer to suffer the tax charge in order to benefit from the convenience provided by a company car. Regardless of whether a car is owned by the employee or provided by the employer, the income tax rules now patently favour smaller fuel-efficient cars. In many cases the provision of fuel for private motoring in a company car will not be tax efficient unless the employee does very high levels of private mileage. This guide is for general information only and is not intended to be advice to any specific person. You are recommended to seek competent professional advice before taking or refraining from taking action on the basis of the contents of this publication. The guide represents our understanding of the law and HM Revenue & Customs practice as at September 2012, which are subject to change. All Rights Reserved Page 13 of 13

### THE TAXATION OF COMPANY CARS. Calculating the cash equivalent

THE TAXATION OF COMPANY CARS Company cars remain a popular employment-related benefit despite the fact that income tax charges on them are generally high. The benefit of having a company car available

### For cars emitting between 1 and 75 g/km the appropriate percentage is reduced to 5% until 5 April %

Company Car Tax The basis for taxing those who use company cars is to tax a figure calculated by multiplying the car s list price by an emissions-based percentage, with a 3% surcharge on diesel powered

### Tax benefits for ultra low emission vehicles

k0 Tax benefits for ultra low emission vehicles Ultra low emission vehicles (ULEVs) are vehicles that produce less than 75g of carbon dioxide (CO2) for every kilometre travelled. Both private and business

### The current regime for taxing employer provided cars (commonly referred to as company cars) is intended:

Cars for Employees The current regime for taxing employer provided cars (commonly referred to as company cars) is intended: to encourage manufacturers to produce cars which are more environmentally friendly

### There can be a benefit on: a) A car that is provided for private use (however incidental the private use is); and/or

Registered in England Registered Number: 04744238 Registered Address: 62 The Street, Ashtead, Surrey, KT21 1AT Registered with the Chartered Institute of Taxation as a firm of Chartered Tax Advisers Car

### The current regime for taxing employer provided cars (commonly referred to as company cars) is intended:

Cars for Employees The current regime for taxing employer provided cars (commonly referred to as company cars) is intended: to encourage manufacturers to produce cars which are more environmentally friendly

### Company Car Tax. Cars running solely on diesel fuel are subject to a 3% supplement.

Company Car Tax The basis for taxing those who use company cars is to tax a figure calculated by multiplying the car s list price by an emissions-based percentage (the appropriate percentage ), with a

### Volkswagen Company Car and Van Tax Guide 2015/2016.

Volkswagen Company Car and Van Tax Guide 2015/2016. Budget 2015 headlines The coalition Government s sixth and final budget, ahead of the 2015 general election, contained a number of announcements impacting

### Lease Car Scheme. Drivers Guide

NHS Fleet Lease Car Scheme Drivers Guide Scheme Administrator: Knowles Associates TFM Ltd Red Lion House, The Green Great Bentley Colchester Essex CO7 8QG Telephone: 01206 252300 Fax: 01206 252211 Email:

### Company Car Tax 2014/2015

Company Car Tax 2014/2015 Produced for Zenith by Income Tax Rates 2014/15 2013/14 Rate Band Band % 20 0 31,865 0 32,010 40 31,866 150,000 32,011 150,000 45 150,000+ 150,000+ Personal Allowances 2014/15

### Budget 2012 headlines

Budget 2012 headlines The Coalition Government s third Budget statement contained a number of announcements impacting on the UK company car and van market. These are: Company car tax rates for five years

### Budget 2014 Its impact on your fleet

Budget 2014 Its impact on your fleet This year s Budget, presented by the Chancellor on Wednesday 19 March 2014, was a Budget for building a resilient economy, with the objective of supporting businesses

### Pocket Car Tax Guide 2012/13. www.deloitte.co.uk/carconsulting

Pocket Car Tax Guide 2012/13 www.deloitte.co.uk/carconsulting Income Tax Rates 2012/13 2011/12 Rate Band Band % 20 0 34,370 0 35,000 40 34,371 150,000 35,001 150,000 50 150,001+ 150,001+ Personal Allowances

### Business. Motoring BUSINESS MOTORING 2014/15 WWW.NEWBYCASTLEMAN.CO.UK

2014/15 GUIDE 2014/15 TO... GUIDE TO... Business BUSINESS Motoring MOTORING WWW.NEWBYCASTLEMAN.CO.UK YOUR GUIDE TO Business Motoring For many businesses, motoring costs are a significant expense in the

### GUIDE TO COMPANY CAR TAX

GUIDE TO COMPANY CAR TAX 2013/2014 The explanations and data set out in this guide are for general information only, and though given in good faith, are given without any warranty as to their accuracy

### Including details of the 2015 emissions-based changes, Vehicle Excise Duty and fuel allowances.

BMW Fleet & Business Sales bmwcorporate.co.uk The Ultimate Driving Machine Company Car tax. 2015/2016. Including details of the 2015 emissions-based changes, Vehicle Excise Duty and fuel allowances. Whille

### Car benefits and car fuel benefits

Helpsheet 203 Tax year 6 April 2013 to 5 April 2014 Car benefits and car fuel benefits A Contacts Please phone: the number printed on page TR 1 of your tax return the SA Helpline on 0300 200 3310 the SA

### Guide to Company Car Tax 2009/2010

Guide to Company Car Tax 2009/2010 The explanations and data set out in this guide are for general information only, and though given in good faith, are given without any warranty as to their accuracy.

### Taxation and the Company Car

Home Budget 2012 Vehicle Excise Duty / First Registration Fee / P11D value 2012 / 2013 Company car taxation Fuel allowances Class 1A National Insurance Contributions Writing Down Allowances / Lease rental

### Income tax: company car tax rates 2016-17

Income tax: company car tax rates 2016-17 Who is likely to be affected? Businesses and employers where company cars are made available for private use. General description of the measure For 2016-17, the

### Guide to Company Car Tax 2011/2012

Guide to Company Car Tax 2011/2012 The explanations and data set out in this guide are for general information only, and though given in good faith, are given without any warranty as to their accuracy

### CITROËN FLEET COMPANY CAR TAX, CAPITAL ALLOWANCES AND TAX DEDUCTIONS FOR BUSINESS

CITROËN FLEET COMPANY CAR TAX, CAPITAL ALLOWANCES AND TAX DEDUCTIONS FOR BUSINESS Benefit in kind Company car tax benefit in kind bik for employees 4 bik for employers 5 How is bik calculated? 6 bik for

### Business Motoring. Information for a changing world. RMT guides

RMT guides Business Motoring Information for a changing world. www.r-m-t.co.uk your guide to Business Motoring For many businesses, motoring costs are a significant expense in the profit and loss account.

### Including details of the 2014 emissions-based changes, Vehicle Excise Duty and fuel allowances.

BMW Corporate Sales bmwcorporate.co.uk The Ultimate Driving Machine Company Car tax. 2014/2015. Including details of the 2014 emissions-based changes, Vehicle Excise Duty and fuel allowances. Whille we

### Company Car Tax 2011/12

Company Car Tax 2011/12 Details of new company car tax bandings, changes to VED rates, fuel benefit charge and AMAPs, plus the fair fuel stabiliser Produced in association with Vehicle Excise Duty (Ved)

### Company Car tax. 2013/2014. IncludIng details of the 2013 emissions-based reforms, VehIcle excise duty and national Insurance.

Company Car tax. 2013/2014. IncludIng details of the 2013 emissions-based reforms, VehIcle excise duty and national Insurance. Whilst we have made every effort to ensure the information in this document

### Your Guide to. Business Motoring 2009/10

Your Guide to Business Motoring 2009/10 Your Guide to Business Motoring For many businesses, motoring costs are a significant expense in the profit and loss account. This cost has increased in recent years

### Table of contents. Chapter 1 - Directors and employees. Chapter 2 - Travel expenses. Introduction... 1. Table of contents

Table of contents Introduction.................................................. 1 Chapter 1 - Directors and employees 1.1. What is the position for employers?....................... 5 1.2. Are business

### NEW MILEAGE ALLOWANCES. Joint Staff Side Briefing

NEW MILEAGE ALLOWANCES Joint Staff Side Briefing June 2013 NHS Agenda for Change (AFC) mileage allowance information This joint staff side briefing has been drawn up as a guide for members and representatives

### Business Vehicle Finance from Ford. A guide to Business Vehicle Finance and company vehicle taxation

Business Vehicle Finance from Ford A guide to Business Vehicle Finance and company vehicle taxation 2 3 Business Vehicle Finance from Ford A guide to company vehicle taxation and business finance. This

### Report on the Evaluation of the. Company Car Tax Reform: Stage 2

Report on the Evaluation of the Company Car Tax Reform: Stage 2 Her Majesty s Revenue & Customs 22 March 2006 Table of Contents Introduction Page 3 Summary of results Page 4 Background Page 6 The evaluation

### Business Vehicle Finance from Ford. A guide to Business Vehicle Finance and company vehicle taxation

Business Vehicle Finance from Ford A guide to Business Vehicle Finance and company vehicle taxation 2 3 Business Vehicle Finance from Ford A guide to company vehicle taxation and business finance. Vehicle

### ebrief for freelancers and contractors Car & motorcycle expenses for contractors

ebrief for freelancers and contractors Car & motorcycle expenses for contractors Personally owned cars and motorbikes: Are you really claiming all the travel and subsistence expenses you are entitled to?

### LEASE CAR POLICY AND PROCEDURE

LEASE CAR POLICY AND PROCEDURE Lease Car Policy & Procedure Page: Page 1 of 16 Recommended by Approved by Executive Management Team Board of Directors Approval date 4 May 2011 Version number 1.4 Review

### Company Car Tax in 2009/2010 Including details of the 2009 vehicle excise duty reform and emissions-based capital allowance system

The explanations and data set out in this leaflet are for general information only, and though given in good faith, are given without any warranty as to their accuracy. Please refer to your legal or tax

### company cars: a guide for drivers

company cars: a guide for drivers Contents Introduction 03 The basics 04 Beyond the basics 06 Private fuel costs 07 Vehicle specification 09 Conclusion and action plan 10 Next steps: resources 11 02 Introduction

Your Guide to Business Motoring 2011/12 RITSONS hartered Accountants & Business Advisers www.ritsonsca.com Your Guide to Business Motoring For many businesses, motoring costs are a significant expense

### TAX RATES AND ALLOWANCES 2012-2013

TAX RATES AND ALLOWANCES 2012-2013 CONTENTS INCOME TAX RATES 2 INCOME TAX ALLOWANCES 2 PENSIONS 3 PERSONAL INVESTMENT INCENTIVES 3 BASIC STATE PENSION 3 NATIONAL INSURANCE CONTRIBUTIONS 4 CAR BENEFIT FOR

### carbon footprinting a guide for fleet managers

carbon footprinting a guide for fleet managers Introduction For some organisations, carbon footprinting is perceived to be about reducing emissions purely for environmental reasons. But it is primarily

### FOR ELECTRONIC USE ONLY

Branston Adams accountants & business advisors Suite 2, Victoria House, South Street, Farnham, Surrey. GU9 7QU tel: +44 (0)1252 728 598 fax: +44 (0)1252 728 652 email: paul@taxaccountancy.com www.branstonadams.co.uk

### Company Car Taxation 2014 Your Guide. Produced in association with

Company Car Taxation 2014 Your Guide Produced in association with Company Car Taxation Your Guide Disclaimer This publication is intended to provide general information and is not an exhaustive treatment

### These VAT rules apply whether you are a sole trader or a limited company.

Cars and Vehicles VAT You will not be able to reclaim any input VAT on the purchase of your car, (nor will you have to charge any output VAT on sale, unless you are in the very unlikely business of making

### Tax Facts STRAIGHT TO THE POINT RATES AND ALLOWANCES GUIDE 2016 /

Tax Facts RATES AND ALLOWANCES GUIDE 2016 / 2017 STRAIGHT TO THE POINT www.hazlewoods.co.uk The data in this card is based on releases from HM Treasury and HMRC. INCOME TAX Personal allowances those born

### THE CHARTERED INSURANCE INSTITUTE. Diploma in Regulated Financial Planning SPECIAL NOTICES

THE CHARTERED INSURANCE INSTITUTE R06 Diploma in Regulated Financial Planning Unit 6 Financial planning practice April 2015 examination SPECIAL NOTICES All questions in this paper are based on English

### Frequently Ask Questions

Frequently Ask Questions This document has been prepared to answer questions that you are likely to have on the new SalarySacrifice4Cars scheme ( the car scheme ). It is set out in 3 sections The car scheme

### An evaluation of the UK s shift to CO 2 based Company Car Taxation

Taxation of Company Cars Workshop An evaluation of the UK s shift to CO 2 based Company Car Taxation Stephen Potter Professor of Transport Strategy and member of the UK Green Fiscal Commission Context

### Income Tax Main reliefs 2014/15 2013/14 Allowed at top rate of tax Allowed only at 10% Rate bands 2014/15 2013/14

Tax Rates 2014 2015 Income Tax Main reliefs 2014/15 2013/14 Allowed at top rate of tax Personal Allowance (PA) 10,000 9,440 Personal Allowance (born 6.4.38-5.4.48)* 10,500 10,500 Personal Allowance (born

### INCOME TAX RATES OF TAX 2014/2015 2015/2016

INCOME TAX RATES OF TAX Starting rate for savings* 10% 0% Basic rate 20% 20% Higher rate 40% 40% Additional rate 45% 45% Starting rate limit 2,880* 5,000* Threshold of taxable income above which higher

### THE BMW GROUP GUIDE TO FLEET FUNDING.

THE BMW GROUP GUIDE TO FLEET FUNDING. The way vehicles are funded in a fleet context varies widely and there are two main methods for acquiring vehicles for your fleet: Outright purchase over a fixed period

### Frequently Asked Questions.

Frequently Asked Questions. Introduction to TCH Salsa We are introducing a unique benefit to our employees which allows you to sacrifice an element of your salary for a leased car, taking advantage of

### Capital allowances for business cars

Capital allowances for business cars Who is likely to be affected? Any business that buys or leases cars. General description of the measure The 100 per cent first-year allowance (FYA) for expenditure

### Fleet Funding and Company Car Taxation

LeasePlan Consultancy Services Fleet Funding and Company Car Taxation Your Guide for 2015 Produced in association with Company Car Taxation Your Guide Disclaimer This publication is intended to provide

### Tax Tables 2014/15. Rates 13/14 14/15 Starting rate of 10% on savings income up

Tax Tables 2014/15 INCOME TAX Rates 13/14 14/15 Starting rate of 10% on savings income up 2,790 2,880 to* Basic rate at 20% on income up to 32,010 31,865 Maximum tax at basic rate 6,402 6,373 Higher rate

### 21 Tax Saving Tips Tax & Accounts www.hfmtax.co.uk

21 Tax Saving Tips Tax & Accounts www.hfmtax.co.uk Everyone wants to save tax and, although there are complex tax savings schemes available, some tax savings are simple. You just need to take some care

### 5.4.2 Benefit-in-Kind on Company Cars

Updated March, 2014 1. Introduction 5.4.2 Benefit-in-Kind on Company Cars This manual outlines the tax position where a company car is made available to a director or employee for his or her private use.

### GE Capital. Cash or Car? Choosing what s best for me

GE Capital Cash or Car? Choosing what s best for me Making the right decision for you Wondering whether you should choose a Company Car or take a Cash Allowance in lieu of a Company Car? Is it time to

### Financial Procedure Note FPN 6

Financial Procedure Note FPN 6 Travel Related Expenses October 2012 Financial Procedure Notes supplement Financial Regulations, providing detailed guidance on various topics. Failure to comply with these

### Benefits in kind guide. Unlimited accountant support and online software

Benefits in kind guide Unlimited accountant support and online software 033 3311 8000 Benefits in kind guide Contents: Benefits in kind are benefits which employees or directors receive from their company

### Finance (No. 2) Bill 2015 Explanatory Notes. Clauses 1 to 125

Finance (No. 2) Bill 2015 Explanatory Notes Clauses 1 to 125 March 2015 Crown copyright 2015 You may re-use this information (not including logos) free of charge in any format or medium, under the terms

### Electric Cars: Reduce Your Tax & Your Carbon Footprint

: Reduce Your Tax & Your Carbon Footprint Electric cars don t just help the environment; they can also prove a huge money-saving option. UK Plug-in Car Grant In January 2011, the government introduced

### TAX RATES AND ALLOWANCES 2014-2015

TAX RATES AND ALLOWANCES 2014-2015 CONTENTS INCOME TAX RATES 2 INCOME TAX ALLOWANCES 3 PENSIONS 3 PERSONAL INVESTMENT INCENTIVES 4 BASIC STATE PENSION 4 NATIONAL INSURANCE CONTRIBUTIONS 5 CAR BENEFIT FOR

### Class 1A National Insurance contributions on car and fuel benefits

CA33 National Insurance contributions series Class 1A National Insurance contributions on car and fuel benefits A guide for employers Use from 6 April 2015 for 2015 to 2016 and earlier years Help and guidance

### Employment status: employee in terms of employment law. generally taxed as employees. Tax on profits:

Sole trader Vs Limited company The comparison is for a trading business. Many of the points summarised here are not relevant if you want to compare individuals or companies that manage investment business.

### INTRODUCTION WHAT IS THE LEASE CAR SCHEME? WHO CAN JOIN THE SCHEME?

Introduction What is the lease car scheme? Who can join the scheme? How much will it cost? Is it cheaper than owning my own car? Can I choose any make of car? Who is insured to drive the car? What is included

### Budget 2013 Summary Guide

Budget 2013 Summary Guide Contents Section 1: Introduction Section 2: Company/Business Tax IR35 Corporation Tax rate Capital allowances Company cars VAT measures Employment allowance Section 3: Personal

### ATTRACT MOTIVATE RETAIN

ATTRACT MOTIVATE RETAIN A Salary Sacrifice Car Scheme white paper from the UK s leading fleet services company. A LEX AUTOLEASE WHITE PAPER SALARY SACRIFICE CAR SCHEME 1 A CAR FOR ALL EMPLOYEES As a method

### Broomfield & Alexander Employment Tax Advisory Services

Broomfield & Alexander Employment Tax Advisory Services Contents Broomfield & Alexander Employment Tax Advisory Services 1 Tax responsibilities for employers Tax mitigation and red tape Specialist help

### In today s fast-paced world, business owners often find themselves spending a lot

ISSUE 2013-09 WWW.BDO.CA THE TAX FACTOR STEERING THE OWNER-MANAGER THROUGH CAR OWNERSHIP DECISIONS In today s fast-paced world, business owners often find themselves spending a lot of time in their cars.

### Tax Points Update Issue 1/2013. RTI Changes and Budget 2013. PAYE in Real Time (RTI)

Tax Points Update Issue 1/2013 RTI Changes and Budget 2013 PAYE in Real Time (RTI) On April 6 th 2013 the way PAYE is reported to HMRC will change. Unless HMRC has notified you otherwise, you must be compliant

### Capital allowances: extension of enhanced capital allowances for car and goods vehicles to 2018

Capital allowances: extension of enhanced capital allowances for car and goods vehicles to 2018 Who is likely to be affected? Businesses planning to purchase low CO 2 emission cars, zero-emission goods

### FINE TUNING YOUR FLEET. A comprehensive guide to company car taxation. Produced in association with

FINE TUNING YOUR FLEET A comprehensive guide to company car taxation Produced in association with Disclaimer This publication is intended to provide general information and is not an exhaustive treatment

### Year End Tax Guide: 2014/15

Year End Tax Guide: 2014/15 A short guide to rates, reliefs and allowances available for use by 5 April 2015 Contents Personal tax and allowances Income and personal allowances 3 Capital gains tax 3 Inheritance

### Paper F6 (UK) Taxation (United Kingdom) Tuesday 3 June 2014. Fundamentals Level Skills Module. The Association of Chartered Certified Accountants

Fundamentals Level Skills Module Taxation (United Kingdom) Tuesday 3 June 2014 Time allowed Reading and planning: Writing: 15 minutes 3 hours ALL FIVE questions are compulsory and MUST be attempted. Rates

### Pay Less Tax NOVEMBER EDITION 2008. Thorne Widgery, 33 Bridge Street, Hereford HR4 9DQ

Pay Less Tax NOVEMBER EDITION 2008 Thorne Widgery, 33 Bridge Street, Hereford HR4 9DQ Tel: 01432 276 393 Fax: 01432 352 657 Email:info@thornewidgery.co.uk Tax savings become more important in credit crunch!

### In this month s enews we report on key announcements made in the Pre-Budget Report.

DECEMBER 2009 - INTRODUCTION In this month s enews we report on key announcements made in the Pre-Budget Report. Please browse through the articles using the links below and contact us if any issues or

### *Not available if taxable non-savings income exceeds the starting rate band.

2015/16 Tax Tables INCOME TAX Rates 15/16 14/15 Starting rate 0% 10% on savings income up to* 5,000 2,880 Basic rate of 20% on income up to 31,785 31,865 Maximum tax at basic rate 6,357 6,373 Higher rate

### TAKING CONTROL OF YOUR PENSION PLAN. The value of pension contributions

TAKING CONTROL OF YOUR PENSION PLAN If you add together all the money you have in pension arrangements, the total may well dwarf every other investment you ever make. Despite this, many people are happy

### Tax. Tax rates 2007/08. If it counts, it s covered. Audit.Tax.Consulting.Corporate Finance.

Tax Tax rates 2007/08 If it counts, it s covered. Audit.Tax.Consulting.Corporate Finance. Contents Personal tax 1 Indirect taxes 7 National insurance contributions 2007/08 9 Business tax 11 These tables

### Tax rates 2014/15 Listen. Analyse. Apply.

Tax rates 2014/15 Listen. Analyse. Apply. UK Budget 2014 Contents Personal Tax 1 Indirect taxes 10 National Insurance contributions 14 Business tax 16 Offices 21 These tables are a summary and do not cover

### INCOME TAX Rates 14/15 15/16 Starting rate on savings income up to*

Tax Tables 2015/16 INCOME TAX Rates 14/15 15/16 Starting rate on savings income up to* 10 2,880 0 5,000 Basic rate of 20 on income up to 31,865 31,785 Maximum tax at basic rate 6,373 6,357 Higher rate

### NEWSLETTER MARCH 2007 MAIN TAX RATES, ALLOWANCES AND RELIEFS 2007/08

J F HORNBY & CO Chartered Accountants The Tower, Daltongate Business Centre, Daltongate, Ulverston, Cumbria LA12 7AJ T: 01229 588077 F: 01229 588061 E: jfh@jfhornby.com W: www.jfhornby.com NEWSLETTER MARCH

### BRANCH NEGOTIATING GUIDE:

BRANCH NEGOTIATING GUIDE: 2013 MILEAGE ARRANGEMENTS for staff on Agenda for Change terms and conditions June 2013 1 P a g e Contents Introduction... 3 Background and context... 5 Principles.... 6 The Cost

### The Highland Council

The Highland Council Resources Committee 19th August 2009 Agenda Item Report No Car Leasing and Car Loan Schemes Report by Depute Chief Executive & Director of Finance Summary The revision of employee

### Paper F6 (UK) Taxation (United Kingdom) Tuesday 2 June 2015. Fundamentals Level Skills Module. The Association of Chartered Certified Accountants

Fundamentals Level Skills Module Taxation (United Kingdom) Tuesday 2 June 2015 Time allowed Reading and planning: 15 minutes Writing: 3 hours This paper is divided into two sections: Section A ALL 15 questions

### Efficient cars, efficient finance and perfect business sense. Fleet solutions to get your business moving.

Efficient cars, efficient finance and perfect business sense. Fleet solutions to get your business moving. Toyota continues to push technology forward for today s constantly evolving world. Our long-standing

### ebrief for freelancers and contractors Contractors guide to claiming motorbike, bicycle & van expenses

ebrief for freelancers and contractors Contractors guide to claiming motorbike, bicycle & van expenses Do you do your bit for the environment by cycling to work? Or do you commute by van or motorbike?

### Fundamentals Level Skills Module, Paper F6 (UK)

Answers Fundamentals Level Skills Module, Paper F6 (UK) Taxation (United Kingdom) June 205 Answers and Marking Scheme Section A A 2 D Output VAT 408 x 20/20 = 68 Input VAT 600 x 20/20 = 00 3 A 6,00 (23,700

### National insurance contributions 2006/07 8

Tax Rates 2006/07 Contents Personal tax 1 Indirect taxes 6 National insurance contributions 2006/07 8 Business tax 10 These tables are a summary and do not cover all situations. They are based on information

### BUSINESS MILEAGE CHANGES FREQUENTLY ASKED QUESTIONS

BUSINESS MILEAGE CHANGES FREQUENTLY ASKED QUESTIONS Question 1 What has prompted these changes? 2 Are all staff affected by these changes? Who is most affected by these changes? 3 What are the current

### Lease Car Scheme Managers Guide

NHS Fleet Lease Car Scheme Managers Guide The administration of the scheme is outsourced to a specialist management company (Knowles Associates) who provides quotations, scheme management, driver support

### 2015/16 TAX TABLES. 51-55 Gresham St London EC2V 7HQ 020 7444 4030 partnerswealthmanagement.co.uk

2015/16 TAX TABLES 51-55 Gresham St London EC2V 7HQ 020 7444 4030 partnerswealthmanagement.co.uk INCOME TAX 15/16 14/15 Starting rate 0% 10% on savings income up to* 5,000 2,880 Basic rate of 20% on income

### Company car tax reform in the UK

Company car tax reform in the UK A Summary 9 October 2009 Carolina Valsecchi (IEEP) www.ieep.eu Index Policy before and policy after Impacts of reform Unintended impacts of reform Main drivers of reform

### KEY GUIDE. Drawing profits from a company

KEY GUIDE Drawing profits from a company Constantly changing tax rules When you draw profits from an owner-managed company it is important that you do it in ways that minimise the tax and national insurance

### Introduction to expenses One of the most common questions we get asked is what expenses can I claim through my limited company?

Guide to Expenses Introduction to expenses One of the most common questions we get asked is what expenses can I claim through my limited company? A limited company is not a panacea for claiming in all

### Class 1A National Insurance contributions on car and fuel benefits

CA33 National Insurance contributions series Class 1A National Insurance contributions on car and fuel benefits A guide for employers Use from 6 April 2014 for 2014 15 and earlier years Help and guidance

### Frequently Asked Questions by Employees. Fuel Efficient Car Lease Scheme. An employee benefit offered by the University of Birmingham

Frequently Asked Questions by Employees Fuel Efficient Car Lease Scheme An employee benefit offered by the University of Birmingham If you have any further questions or would prefer to talk to someone,

### Paper P6 (UK) Advanced Taxation (United Kingdom) Friday 5 December 2014. Professional Level Options Module

Professional Level Options Module Advanced Taxation (United Kingdom) Friday 5 December 2014 Time allowed Reading and planning: Writing: 15 minutes 3 hours This paper is divided into two sections: Section