Company vs Personal Car-Tax Benefits

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Company vs Personal Car-Tax Benefits

As an employer providing company car & benefits to employees,you have certain obligations to report HMRC.You will need to report:
* Company cars used for private purpose
*Cars adapted for an employee with disability
* Fuel for private journeys
WHAT IS EXEMPT?
To be exempt, your employees must use the car or fuel in one of the following ways:
a) Privately Owned Cars:
You don’t have to pay anything on directors or employees owned cars
Cars available for Business Travel only:
Business travel are either;
*Travel as part of employee’s duty
*Employee travel to temporary workplace
(Tell employees not to use the vehicle for private purposes)
b)Cars adopted for an employee with disability:
It includes automatic transmission cars employee need it and exempt if the private use is;
Travel between home & work or travel to work related training.
You don’t have to report if the employee buy fuel for private use or reimbursed the fuel cost.
POOL CARS:
You don’t have to pay or report on pool cars as shared by employees for business purposes & kept on employee premises.
Cars provided to Relatives:
You don’t have to pay anything if you are an individual employer or car provided to some one working in your business.Relative includes your spouse/son/dependant.
REPORT TO HMRC:
If the car is not exempt, you must report to HMRC & pay NI on the value of benefit.At the end of the tax year, you will need to report the value & fuel cost:
* Report on form P11D
*Pay Class 1A NI
You must keep the record of employees expenses & benefits & car’s list price.
If you have any question or query, please do not hesitate to contact us.
Info@pyramidpointlimited.co.uk M:07902 130 748

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