Company Cars / 6 posts found
September 2017 Q&A
Q. I have two small businesses which are treated as a group for VAT purposes, so we only submit a single VAT return covering both entities. Are we eligible to use the Flat Rate Scheme? A. Unfortunately not. If you are part of a VAT group, or are eligible to join an existing VAT group, then you cannot use the Flat Rate Scheme (FRS). There is also a rule which stops 'associated' businesses joining the FRS. A business is 'associated' with another business if: one business is under the dominant influence of another; two businesses are closely bound by financial, economic and [...]
Mileage rates for electric and hybrid cars
Some confusion has been reported over how businesses should calculate mileage expenses rates for electric and hybrid company cars. This confusion has arisen largely because HMRC's advisory fuel rates, or approved mileage allowance payments, only cover petrol and diesel cars. There are no separate 'approved' rates for electric or hybrid vehicles. Currently, whilst HMRC do recognise that employees should be reimbursed for costs incurred for business travel, they do not currently recognise electric charging costs as a 'fuel' expense and do not therefore, currently publish separate rates. HMRC's advisory fuel rates can be used to work out mileage costs in certain [...]
The Autumn Statement 2016
This is aimed at those who didn't receive our client newsletter - that is still available at http://eepurl.com/cqcb0b. If you do read them both, let me know which version you prefer:-) Summary Chancellor Philip Hammond has delivered his Autumn Statement 2016, which is the first major review of government finances since the EU Referendum, and Mr Hammond's first major statement since taking responsibility for the work of the Treasury in July 2016. As previously speculated, this will be Mr Hammond's only Autumn Statement as it was confirmed that the government is to move to a single major fiscal event each [...]
October 2016 Q&A
Q. I have recently started a new job and, for the first time in my career, I have been provided with a company car. I have to pay for fuel for private use but my employer says I can claim mileage for business journeys. Will I have to pay tax on fuel payments? A. In addition to the company car benefit charge, employees have to pay tax on any fuel their employer provides that is used for private mileage. For 2016-17 you would calculate this amount by multiplying the car's CO2 percentage by £22,200. So, if the percentage is 28, [...]
September 2016 Q&A
Q. I have recently changed jobs and need to use my car to make business journeys. Will I have to pay tax on the mileage expenses my employer reimburses me for these trips? A. Employers can pay employees a tax-free and national insurance-free amount for every mile they drive on business duties, currently: 45p per mile for the first 10,000 miles 25p per mile for each subsequent mile 24p per mile for motorcycles 20p per mile for bicycles 5p per mile extra for each passenger carried on work-related journeys If your employer reimburses your mileage at less than these rates, [...]
2016 Fuel & Van Benefit Rates
The Van Benefit and Car and Van Fuel Benefit Order 2015 (SI 2015/1979) comes into force on 31 December 2015 and takes effect for the tax year 2016-17 and subsequent tax years. The Order contains provisions for the following: the cash equivalent of the van benefit will rise from £3,150 to £3,170 for 2016-17; the van fuel benefit will increase from £594 to £598; and the cash equivalent of the benefit of fuel for a car is calculated by applying the 'appropriate percentage' (normally calculated by reference to the CO2 emissions of the car) to the figure in ITEPA 2003, [...]