ÀÏ˾»úÎçÒ¹¸£Àû

Company cars


Produced by a Tolley Employment Tax expert
Employment Tax
Guidance

Company cars


Produced by a Tolley Employment Tax expert
Employment Tax
Guidance
imgtext

Introduction

Company cars are one of the most common taxable benefits. The rules for calculating the benefit are complex, and the reporting requirements are more onerous than most benefits. Company cars are covered by very specific legislation.

Detailed guidance on each of the following sections to cover specific circumstances is available at Simon’s Taxes E4.625, from HMRC at EIM23000 and within HMRC’s 480: Expenses and benefits ― a tax guide, chapters 12–16.

If the employer provides a cash alternative to the provision of a company car, this is subject to tax and NIC in the same way as salary.

Scope of the company car benefit tax charge

When does a car benefit charge apply?

A taxable benefit arises on the provision of a company car by an employer to an employee (or a member of their family or household), where that car is available for non-business use. These rules apply where the employer owns or leases the car and allows the employee use of the car.

What is included within the car benefit charge?

The car benefit

Access this article and thousands of others like it
free for 7 days with a trial of Tolley+™ Guidance.

TAKE A FREE TRIAL
Powered by
  • 27 Nov 2024 10:55

Home/ Tolley Tax Guidance/ Employment Tax / Providing benefits to employees

Popular Articles

Personal Tax

Timing of disposal for capital gains tax

Timing of disposal for capital gains taxDate of disposalThe date of the disposal determines the period in which the gain is subject to capital gains tax (CGT). When the rates of CGT change, the determination of the date of disposal can also affect the rate of CGT that applies to the gain.See the

14 Jul 2020 13:50 | Produced by Tolley Read more Read more
tag-icon Year-end tax planning
Owner-Managed Businesses

Trade or hobby

Trade or hobbyInteraction of hobby farming rules and commercialityFarming has its own set of ‘hobby farming rules’, which historically have stated that a profit must be made every six years. This is known as ‘the five-year rule’, in that there can be five years of losses but there must be a profit

14 Jul 2020 13:50 | Produced by Tolley Read more Read more
Owner-Managed Businesses

Repairs and renewals

Repairs and renewalsThe key consideration in determining whether expenditure on repairs and renewals is allowable as a deduction for tax purposes is whether it is capital or revenue in nature. In some cases, it can be relatively straightforward to identify revenue repairs. HMRC provides the

14 Jul 2020 13:23 | Produced by Tolley Read more Read more