Taxable Benefits on Company Vehicles
Posted on 20th January 2017 at 16:29
Do you own a company car or van? Have you heard of the taxable benefits?
Some employers provide a company car for their employees, where the business will pay for the fuel for their own private use. There is a car fuel benefit charge depending on the CO2 rating of the car, applied to a fixed amount which is currently £22,000. For example, a CO2 rating of 150g/km would create a taxable benefit of £5,994. HMRC have confirmed this car fuel benefit will increase to £22,600 for the 2017-18 tax year. However this benefit is not relevant when the employee pays for their own fuel for private use.
The fuel benefit charge for private use of a company van is £3,170. This benefit will increase to £3,230 from April 2017. A company van is given to an employee based on the reason for their employment. Also there is an additional benefit charge for fuel if the employee uses the van often for private use. Currently this benefit is at £598 and within the tax year 2017-18 it will increase to £610. If the van is not used for private use then no benefit will apply.
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