Chapter 3 - Company Car and Fuel Benefit Flashcards
Overview
One of the most common benefits. Employees have a taxable benefit in respect of private use of a car and fuel for private use.
List Price
List price is the price of the car when new, it is not what was paid for the car. We then add any accessories and deduct any employee contributions up to £5k. That gives the list price for benefit calculation
Percentages
Emissions: 0-50g/km = 13% 51-75g/km = 16% 76-94g/km = 19% 95g/km+ = 20% + 1% for each 5g/km above (always round down) 180g/km = 37%
Diesel Supplement
Any diesel car also has a 4% supplement added to the calculation.
Non-Availability
Where an employee doesn’t have the car for a full year, we pro rate. Same applies where a car is off the road for a continuous period of at least 30 days
More than One Car
If an employee has more than one company car, a benefit is calculated in the normal way for each
Pool Cars and Emergency Vehicles
No benefit arises on a pool car or on emergency vehicles.
Fuel Benefit
Separate benefit to a car given where fuel is given for private use. Worked out as:
£23,400 x % based on CO2 emissions
Pro rate for non-12 month availability
Note
If employee reimburses fuel then there’s no benefit