A company car made available by reason of employment for an employee’s private use is a taxable benefit-in-Kind. This document discusses in detail the definition of a car and when a car benefit arises; calculation of benefit; non-availability restriction; exemptions; cars for disabled employees; reporting requirements; P11D treatment; salary sacrifice arrangements; and transitional rules.
Points discussed within this guidance note:
Company cars are one of the most common taxable benefits. In addition they have quite a number of complex rules and onerous reporting requirements. Company cars are covered by very specific legislation which this note discusses in detail, including how to work out if there is a benefit and what is defined as a company car.
> Employees chargeable to tax
> Is there a car benefit?
> What counts as a car?
> The car must be made available by reason of the employment
> Available for private use
> Calculating the benefit
> The pricing stages - calculating the notional price
> Capital contributions
> Payments for private use
> Appropriate percentage
> Annual benefit charge
> Reduction in benefit
> HMRC tools
> Adjustments to the benefit calculation
> Disabled vehicles
> Exemptions and special conditions
> Emergency vehicles
> Car industry
> Reporting the benefit
> Company car for business use only
> Cars with private use
> Payrolling the benefit
> P11D treatment
> Salary sacrifice arrangements
> Transitional rules
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