Vehicle Benefits

Chargeable on employees earning £8,500 or over (including benefits), and directors.

Car Benefit

The tax you pay on your company car is governed by four factors:

  • the list price of the car, on the day before it was first registered, plus certain accessories,
  • the rate at which the car emits carbon dioxide (CO2),
  • the fuel type
    (for most types of car, this is all the information you need to work out the taxable benefit)
  • your highest rate of income tax.

You can find your taxable percentage for 2015/12 using the following table:

CO2 in g/km Taxable % CO2 in g/km Taxable % CO2 in g/km Taxable %
Petrol Diesel Petrol Diesel Petrol Diesel
Less than 145 15% 18% 175 to 179 22% 25% 210 to 214 29% 32%
145 to 149 16% 19% 180 to 184 23% 26% 215 to 219 30% 33%
150 to 154 17% 20% 185 to 189 24% 27% 220 to 224 31% 34%
155 to 159 18% 21% 190 to 194 25% 28% 225 to 229 32% 35%
160 to 164 19% 22% 195 to 199 26% 29% 230 to 234 33% 35%
165 to 169 20% 23% 200 to 204 27% 30% 235 to 239 34% 35%
170 to 174 21% 24% 205 to 209 28% 31% 240 and over 35% 35%


How to find out how much CO2 your company car emits – see:

  • the car’s V5 registration document
  • your dealer
  • the data pages of car magazines (current models)

Reliable emissions data is not widely available for cars registered before 1 January 1998. For them, the following taxable percentages apply, regardless of fuel type:

Engine capacity Taxable %
Up to 1400cc 15%
1401 - 2000cc 22%
Over 2000cc 32%


Van Benefit


  Van under 4 years old Van 4 years old, or over
Benefit per vehicle including fuel for private use £600 £350


Company vans

From 6 April 2015 the taxable benefit for the unrestricted use of company vans will be £3,000 (with no reduction for older vans) plus a further £600 of taxable benefit if fuel is provided by the employer for private travel.

The maximum tax payable on the use of a company van will therefore increase from April 2015 from £200 to £1,400 p.a., and the employer's Class1A NIC payable will increase from £64 to £448 p.a.

Car fuel benefits

If the employee pays for the full cost of all fuel for private journeys (usually including home to work) there will be no car fuel benefit. In all other cases the full tax charge will be due.

The taxable car fuel benefit, for 2015/12, is calculated by multiplying £14,400 by the same percentage as applies (or would apply) for the car benefit.

Example: A company car driver has a car which, on the day before it was first registered, had a list price of £18,000. It runs on petrol, and emits 182 g/km of CO2.

If we assume the driver pays tax at 40%, the annual tax bill on the car is: £18,000 x 23% x 40% = £1,656

If the employer provides any fuel used for private journeys and is not re-imbursed for the cost, the 2015/12 tax bill for the fuel is: £14,400 x 23% x 40% = £1,324.80.

 

 

 

Want better TAX ADVICE for 2017-8?

Setting up in business | Legal Compliance | Keeping informed | Planning for profit | Raising finance |
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Managing growth | Buy, sell or merge | Minimising tax | Agreeing tax liabilities | Tax Rates 2017/2018 |

What Are The Benefits For You Demack?

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Features
Benefits
1-3: Compliance work

Regular visits of at least three times a year

Deeper knowledge/understanding of business

We are interested in being closely associated with your business

So you get peace of mind from knowing someone is paying close attention to how your business is running the whole year and not just when the accounts need doing.

We will show you the valuable insight that can be gained from the analysis of your accounts.

Helping you understand your accounts so you can spot potential opportunities or danger areas much more quickly, helping you plan your cash flow more accurately.

And giving you guidance on how you can improve your profitability.

So you know book-keeping and accounting systems are working through the year so preventing any nasty surprises at the end.

You can get a lot more out of your accountant than compliance work.

4: Pushing for Profits

Forecasts to implement the four ways to grow

Using the details of your accounts

Pushing for Profits workshop

Time away from working IN your business to work ON your business allowing you to focus on its true potential.

By using the four ways to grow model you will be able to set a specific action plan to develop your business over the coming financial year to maximize your profit margin.

From our knowledge of your accounts we can create accurate forecasts that plot the best way to grow your business by highlighting the areas with the most potential for increased profitability.

5: Taking Financial Control

Monthly accounts

Budgets

The monthly reviews of the taking financial control programme will keep you focused on your financial and tactical goals and keep a focused eye on profitable opportunities.

The programme will make sure you have the ALL information you need to allow you to feel confident in all the necessary financial and tactical decisions you will need to make.

It will also make sure you are within or beating your cash flow, balance sheet and P&L forecasts helping you make the most of the money you have and stop unnecessary wastage.

6: Planning For Growth

Development of Business Plan

Helping you keep more of what you earn

Tax mitigation

All good businesses have a robust plan for the future. The Planning for Growth process helps you to construct a solid vision of the direction and growth of your business.

From this strong relationship and in-depth understanding of your company you can develop long term strategies which include tax mitigation planning.

 

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