Company Car Tax 2014/2015

Transcription

1 Company Car Tax 2014/2015 Produced for Zenith by

2 Income Tax Rates 2014/ /14 Rate Band Band % , , , ,000 32, , , ,000+ Personal Allowances 2014/ /14 Personal allowances Born after 5 April ,000 9,440 Born after 5 April 1938 but before 6 April ,500 10,500 Born before 6 April ,660 10,660 Notes 1. Personal Allowance reduced by 1 for every 2 of income above 100,000. Applies irrespective of age. 2. Reduced by 1 for every 2 of income over 27,000 until the level of the basic personal allowance is reached ( 26,100 in 2013/14).

3 Vehicle Excise Duty Registered before 1 March 2001 Engine size 2014/15 1,549cc and below 145 Above 1,549cc 230 Registered on or after 1 March 2001 CO / /15 VED emissions Standard rate First year rate band g/km Petrol & diesel* Petrol & diesel* A Up to B C D E F G H I J K** L M Over ,090 VED rates will increase in line with inflation (based on RPI) in future years. 2014/15 rates take effect from 1 April * Alternative fuel discount 2010/11 onwards: 10 for all cars. ** Includes cars emitting over 225g/km registered before 23 March 2006.

4 Company Car Benefit g/km of CO 2 % of 2014/ / / / /19 list price Car CO 2 emissions should be rounded down to the nearest 5g/km.

5 Fuel Adjustments Diesel supplement Add 3% to the % of list price if car runs solely on diesel, up to the limit of 35% to 2014/15 and 37% from 2015/16. The Diesel supplement is to be abolished from 6 April Electric cars Tax on cars which cannot produce CO 2 emissions under any circumstances (electric cars) is based on 0% of the car s list price until 5 April 2015 and 5% from 6 April 2015, rising to 7% from 6 April 2016, 9% from 6 April 2017 and 13% from 6 April Fuel Scale Charge Benefit in kind = 21,700 x % of list price ( 21,100 in 2013/14). % of list price is the same as that used for calculating the company car benefit in kind (see left). The diesel supplement is also applicable. The fuel scale charge does not apply to electric only cars. Approved Mileage Rates For privately owned cars Business mileage Up to Excess over 10,000 miles 10,000 miles All cars 45p* 25p * 10,000 miles threshold does not apply to National Insurance.

6 Capital Allowances CO 2 emissions g/km Writing Down Allowance (WDA) 95 or below (from April 2013) 100% first year capital allowances 75 or below (from April 2015) 100% first year capital allowances From April % WDA Above % WDA From April % WDA Above 160 8% WDA From April % WDA Above 130 8% WDA to 31 March 2018 From April 2009 balancing allowances or charges on the disposal of vehicles were abolished meaning that 100% recovery of tax relief on depreciation over the life of the car on the fleet is no longer available. Cars acquired before April 2009 should continue to be treated under the rules prevailing at the time for a transitional period which ends on the last day of the business first chargeable period to end on or after 31 March 2014 (for corporate tax) or 5 April 2014 (for income tax). If there remains any balance of unrelieved expenditure after this 5 year period, the balance will be added to the unrelieved expenditure in the Main Plant & Machinery pool. Car lessors have not been eligible to claim FYAs on expenditure since April 2013.

7 Leasing Disallowance Tax relief for leased cars is limited according to the CO 2 emissions as follows: Allowed Disallowed rentals rentals g/km of CO 2 % % From April or below Above From April or below Above The above rates apply to contracts entered into during each period until they expire.

8 VAT on Private Fuel 12 months 3 months 1 month VAT due VAT due VAT due g/km of CO or less or more Businesses must use these new VAT fuel scale charges from the start of their next prescribed accounting period beginning on or after 1 May 2014.

9 Corporation Tax Year ended 31 March Normal rate 21% 23% Small companies rate 20% 20% Charged up to 300, ,000 Marginal relief up to 1,500,000 1,500,000 Marginal rate 21.25% 23.75% VAT Standard rate 20% VAT as a fraction of the inclusive price 1/6 From April 2014 Annual turnover limits Registration (last 12 months or next 30 days) 81,000 Deregistration 79,000 National Insurance Class 1 (2014/15 tax year) Employee s Employer s Weekly pay contributions contributions nil nil % 13.8% Over % 13.8% This Pocket Car Tax Guide is intended to provide a quick reference to the current tax regulations for drivers of company cars and employers.the content has been provided for informational purposes only and should not be relied on to cover specific situations or circumstances or as a substitute for professional advice. The contents of this publication are intended to reflect the law and practice of UK taxation as it applies in 2014/15 on the basis of information available on 19 March 2014.

10 Zenith is a multi award-winning independent leasing, fleet management and vehicle outsourcing business. Our customer base includes many household brands and some of the biggest organisations in the UK. We deliver innovative and intelligent vehicle solutions to mid to large corporates and have a strong focus on high quality service delivery and innovation. Our products and services portfolio includes: Funding Solutions including Contract Hire, Contract Purchase and Employee Car Ownership Vehicle Management Solutions including Maintenance Management, LCV and HGV Management Consultancy our strategic consultancy service advises companies on the design of leading edge vehicle schemes Accident Management managed in-house for control of cost and service delivery Vehicle Hire passenger, LCV and specialist rental solutions Salary Sacrifice Car Schemes an all employee vehicle benefit provided at little or no cost to the employer Ancillary Products and Services including online fleet diagnostic tools, whole life cost analysis, risk management, mileage capture, cash allowance management, fuel card management and telematics Call or enquiries@zenith.co.uk or visit