Employment Income - Cars

Question 1

Is commuting in a car considered private use?

Answer 1

YES - taxable benefit

Question 2

What car price do we use when calculating taxable benefit?

Answer 2

List price + optional extras (over £100) - employee capital contribution (capped at £5,000)

Question 3

If emissions are over 95g/co2, what is the maximum figure we can use for petrol and diesel engine cars?

Answer 3

Petrol: 37%
Diesel: 37%

Question 4

For diesel engine cars what is the % additional supplement when calculating the %?

Answer 4

3%

Question 5

Do we deduct private use payments by the employee from the taxable benefit calculation?

Answer 5

Yes

Question 6

What cars are exempt from Car Benefit?

Answer 6

Pool Cars:

• Used by more than one employee
• Any private use is incidental to business use
• Not kept overnight at/near residence of employee

Question 7

What is the base figure used for fuel benefit?

Answer 7

£22,200

Question 8

What % is used to calculate fuel benefit?

Answer 8

Same percentage used to calculate car benefit?

Question 9

What is the standard private use charge for Vans?

Answer 9

£3,170

Question 10

If the van is used privately, but has Co2 emissions of 0, what is the private use charge?

Answer 10

£634 - 20% of normal benefit

Question 11

What is the taxable benefit if a van is used for commuting?

Answer 11

No benefit - commuting in a van is not considered private use, unlike cars.

Question 12

What is the standard charge if van fuel is made available for private use?

Answer 12

£598

Question 13

What are the allowable limits for mileage?

Answer 13

First 10,000 miles: 45p per mile

Excess over: 25p per mile