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Company Car Benefit

HMRC have introduced a generous scheme to encourage small business owners to do more for the environment through their company cars.

Prevously providing a company car to an employee has been very expensive from a tax point of view, however this is no longer the case.

Those cars which have CO2 emissions of not more than 95g per kilometre driven, qualify for 100% allowances within the Company “ this means that if the car costs £20,000 you can offset the whole amount against your Company profits in the first year.

Previously this would have been spread over at least 4 years, this can be a big help especially for businesses in their first few years of trading.

The company car tax paid by your employee is also reduced. Which is an added benefit when you are looking to take on new staff.

People used to worry about how much they were losing on their salarys with company cars, the new rulings on these types of cars mean that it is not costing your employees masses in extra taxes.

Remember as well that your company will pay for all the repairs, tax, business fuel and insurance on the car, reclaiming VAT where applicable and obtaining Corporation Tax savings on all costs.

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CAR BENEFITS 2018/2019 – CARS WITH C02 EMISSION FIGURE*

(g/km) Petrol % Diesel %
0-50 13 17
51-75 16 20
76-94 19 23
95-99 20 24
100-104 21 25
105-109 22 26
110-114 23 27
115-119 24 28
120-124 25 29
125-129 19 22
130-134 27 31
135-139 28 32
140-144 29 33
145-149 30 34
150-154 31 35
155-159 32 36
160-164 33 37
165-169 34 37
170-174 35 37
175-179 36 37
180 and above 37 37
To help you choose which Company Car is best for you check out www.comcar.co.uk 

CARS WITH NO CO2 EMISSION FIGURE & CARS 1ST REGISTERED BEFORE 1/1/98

Registered before 1st January 1998 1400cc or less 1401cc -2000cc 2001cc and more Rotary engine
% rate 15 22 32 32
Registered after 1st January 1998 % rate 15 (Diesel+ 3%) 25 (Diesel + 3%) 35 35

 


CAR BENEFITS – CARS THAT RUN ON ALTERNATIVE FUELS & TECHNOLOGIES

Type of car Electric Only Hybrid Electric Gas Only Bi-fuel with CO2 Emissions figure Bi-fuel conversion or other bi-fuel not type B Cars manufactured for E85 fuel
Code E A A A A A
Discount from 6.4.11 Flat rate 9% None None None None None

 

FUEL BENEFIT CHARGE – Based on CO2 emissions. Charge to be multiplied by a set figure for the year 2014/2015 £21,700 (previously 2013/2014 £21,100).

Example: A car that has a CO2emissions of 195 g/km. % used to calculate car benefit is 32% for 2014/2015 the fuel scale charge will be 32% x £21,700 = £6,944.

Cars registered before 1/1/98 and cars with no CO2 emissions figure. % figure to be used is the same as used for Car Benefits. Class 1A NIC due.

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Need HELP? or have QUESTIONS? – then please give us a call!

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