Company Car Tax

Company Car Tax Guide

If you make a car available to your employees and it is available for private use (including commuting), your employees have to pay tax on the benefit of this. In the same way, they have to pay tax if you provide free or subsidised fuel for private use in that car. Where these benefits are taxable, employers and other providers (but not employees) are liable to pay Class 1A NICs. In general, the benefit charge is lower for cleaner and cheaper cars. This is to encourage you and your employees to choose cars which are less damaging to the environment. This company car tax guide guide provides information on how the benefit charge is calculated. This Company Car Tax Guide – Crown Copyright © 2012 »

Employees & Company Car Tax

A guide for company car drivers from ComCar The emissions–based regime for taxing company cars has been in force since April 2002. Introduction The provision of a fully expensed company car is still a common employee benefit. Some even suggest that it will become more popular as shortage of finance and soaring insurance costs cause “cash takers” to give up their allowance and move back to the company car. The success of salary sacrifice could also increase the size of the company car park. Taxation policy is strongly focused on the CO2 emissions of the vehicle, perhaps making this the area where environmental taxation is at its most advanced as well as its highest level in terms of tax per tonne of CO2. There are implications for income tax, VAT, Employers and Employees n... »