½Û×ÓÊÓƵ

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

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+â„¢
TAKE A FREE TRIAL NOW
Powered by
  • 21 Mar 2025 08:32

Home/ ½Û×ÓÊÓƵ Guidance/ Employment Tax / Providing benefits to employees

Popular Articles

Personal Tax

Income tax losses ― overview

Income tax losses ― overviewIncome tax losses can arise due to a number of reasons, but not all losses can be relieved against total income and some losses can only be set against certain types of component income. The table below is a summary of the main reliefs for income tax losses.Summary of

04 Mar 2021 12:19 | Produced by Tolley Read more Read more
Owner-Managed Businesses

Sales, advertising and marketing

Sales, advertising and marketingExpenditure on sales, advertising and marketing activities may include amounts which are disallowable for the purposes of calculating trading profits. This may be because the expenditure is:•capital in nature (see the Capital vs revenue expenditure guidance note)•not

14 Jul 2020 13:28 | Produced by Tolley Read more Read more
Owner-Managed Businesses

Capital allowances on cars

Capital allowances on carsSummary of capital allowances on carsThe current capital allowance rates applicable to cars are as follows:Pool typeDescription of carRateLegislationMain rate poolNew and unused cars with CO2 emissions of 50g/km and below 18%CAA 2001, s 104AASecondhand cars with CO2

14 Jul 2020 11:08 | Produced by Tolley Read more Read more
tag-icon Autumn Budget 2024