| p>1. What is the company car tax? | | | | manual equivalent. Some of the equipment used in the |
| If your employer gives you a car to use for both | | | | car may also be tax-deductible, such as that which is |
| business and private use, then you have to pay a tax | | | | used solely by a disabled person or equipment included |
| based on the use of the car. If you earn more than | | | | so that an employee with a disability badge can use |
| £8,500 per year and have use of a car, then | | | | the car. |
| you have to pay the tax on it. There is also an | | | | 7. What shouldn't I include in the price of accessories? |
| additional tax if you get free or subsidized fuel for your | | | | When you are making up the price of accessories that |
| private use of the car. | | | | are added to the company car, there are some things |
| 2. What is the Company Car Tax calculator? | | | | that are not to be included. These are: |
| The company car tax calculator helps you to calculate | | | | - Accessories that were in the car when you received |
| the benefit in kind value of the company car and the | | | | it |
| car fuel benefit. This calculator provides you with the | | | | - A mobile telephone |
| amount of tax you are liable for as a result of using | | | | - Accessories used by disabled employees |
| the car for your private use. | | | | - Any privately owned accessories |
| 3. What is the tax on the company car based on? | | | | - The cost of converting the car to LPG or CNG after |
| The tax you pay on the company car depends on | | | | you first registered it |
| several factors. These include: | | | | - Any accessory that you need for business |
| - The list price of the car and if it has any accessories | | | | - Accessories that are not attached to the car, such |
| - The approved Co2 emission guides of the car | | | | as floor mats |
| - The amount of fuel the car uses | | | | 8. Can I claim a replacement car? |
| - Whether or not you pay a lump sum for the car | | | | If for some reason your normal company car was not |
| - Whether you have to make any payments to the | | | | available, you can claim the use of a replacement car. |
| company for the private use of the car | | | | However, it only applies if you normal car was not |
| - The part of the year that it was available for your | | | | available for a continuous period less than 30 days. |
| private use The normal rate of taxation is between | | | | You won't have to pay tax on the replacement is if |
| 15% and 35% of the list price of the car. It will never | | | | was a better car than the one you normally drive or if |
| exceed 35%. | | | | there was no arrangement to provide you with a |
| 4. If I only use the car for business, do I still have to pay | | | | better car. |
| the tax? | | | | 9. What are advisory fuel rates? |
| If you only use the car for business purposes, you | | | | Advisory fuel rates are designed to reflect the fuel |
| won't have to pay any tax. This includes driving to | | | | rates at the time they were set. The intention is to |
| meet clients. As long as you don't use the company | | | | save employers and employees time with having to |
| car for your own private use, you will not have to pay | | | | figure out the average fuel costs they incur. These |
| any tax. | | | | rates only apply when employers reimburse |
| 5. How can I prove that I don't use the company car | | | | employees for the business travel in company cars or |
| for private use? | | | | when they require employees to repay the fuel costs |
| Your employer is the one that is responsible for the | | | | when they use the company car for private use. |
| record keeping on the company car. However, you do | | | | 10. Are there any tax free benefits associated with a |
| have to keep accurate mileage records and you may | | | | company car? |
| have to sign an agreement that you will only use the | | | | The tax free benefits you enjoy when using a |
| car for company business. The use of the car map | | | | company car include: |
| also be part of your contract of employment with the | | | | - There is no tax on pool cars. This means that the car |
| company and the type of use will be stipulated in the | | | | is only used occasionally by employees for business |
| contract. | | | | reasons and none of them take the car home with |
| 6. Are there special regulations for disabled employees | | | | them at night. |
| with a company car? | | | | - If an employee earns less than £8500 per |
| Yes there are special regulations in place with respect | | | | year, there is no company car tax. |
| to a disabled employee who needs to have a car with | | | | - Vans can be used for private use when the fuel |
| an automatic transmission. In this case, you would have | | | | costs do not exceed £500. |
| to use the Co2 emissions charge that is closest to the | | | | |