J Allen & Co   

Chartered Accountants, Registered Auditors, Business & Tax Advisers

"Its About Adding Value To Your Business Not Just Adding Up Numbers"

 

Tax Rates

 

 Car Taxation

Company cars

Tax and National Insurance Contributions (NICs) are calculated on the benefit-in-kind (BIK) on a car, which is determined, principally, by the price of the car and its official carbon dioxide (C02) emissions rating. The list price of the car when new (including accessories) is multiplied by the indicated percentage from the table below, using the official emissions rating for the appropriate fuel of the car to derive the BIK.

 

  2011/12 Taxable benefits table — click here

 

Fuel for private mileage

If an employer provides fuel for any private travel, the taxable benefit is calculated by multiplying £16,900 by the percentage used to calculate the benefit on the car, the employer pays NICs on the same amount at 12.8%.

 

Baseline fuel mileage rates

 

 

 

 

 

 

 

 

 

These rates are reviewed biannually depending on changes in the price of fuel, and changes (if any) take effect on 1 January and 1 July each year, so the next change in rates would be due on 1 January 2012.

 

If the employee uses a privately owned car for business journeys, the employer may reimburse the costs at the following standard rates without the employee incurring a tax or NIC charge:

 

 

 

 

 

If the employer reimburses at a lower rate per mile, the employee is permitted to claim tax relief on the shortfall.

Carrying business passengers qualifies for a further 5p per mile

Phone: 0845-094-5354

Fax: 0870-803-3843

E-mail: info@jallen-accountants.co.uk

Tax Rates Pages