Cars provided by employers to their employees are taxable benefits-in-kind. This is true whether you are an employee of a FTSE100 company or a director/employee of your own single person limited company.
A reminder – how is the company car benefit calculated?
The benefit is calculated as the list price of the company car multiplied by the CO2 scale percentage.
HMRC have updated their car and fuel benefit calculator so it now allows for calculations for the years 2008/09 to 2013/14.
Company Car Benefits in 2013/14
- The starting point for the CO2 scale at 15% is reduced from 120mg/km to 115mg/km so everyone will be charged 1% more than the previous year unless you already use 35%.
- The 5% rate for ultra-low emissions stays at 75mg/km.
- For rates between 76mg/km and 94mg/km the rate will be 10%
- Each extra 5mg/km adds 1%
Car Fuel Benefits 2013/14
- The new base figure for fuel benefit will be £21,000 (up from £20,000)
- The van fuel benefit will be £564 (up from £550)
Future changes
Further increases to the company car benefit scales are planned for April 2014 when the 74-79mg/km band will be charged at 11%, with a 1% increase for each 5mg/km increase in CO2 emissions.