Many business owners provide their employees with vehicles to help them perform their work duties. But with commercial vehicles attracting a lower level of tax than company cars, the vehicle must meet the criteria set out by HMRC. HMRC states that a commercial vehicle must be ‘constructed primarily for the conveyance of goods or burden with … Continue reading Landmark Case Highlights the Rules Around Commercial Vehicles
This post was originally published in 1 September 2020 and was updated on 1 September 2021 for freshness, accuracy and comprehensiveness. For employees using a company car, the new fuel rates for use from 1 September are as follows: Engine SizePetrolLPGDieselAmount per mile (in pence)1400cc or less127101401cc to 1600cc148101601cc to 2000cc14812Over 2000cc201215 For the purpose … Continue reading Advisory Fuel Rates
The term ‘qualifying car’ is widely used and misunderstood. Car dealers may well tell potential buyers that it means you are able to reclaim the VAT. However, is that always the case? Generally, the input tax on the purchase of a motor car is blocked, unless the car is to be used for one of … Continue reading Does ‘Qualifying Car’ Always Mean ‘VAT Recoverable’?
Company car tax rates increased in April 2019, as standard. However, the rates are set to fall from 6 April 2020 for cars with CO2 emissions of up to 69g/km. The Government has announced that in the 2020/21 tax year there will be no benefit in kind on company cars with zero emissions. Further, no … Continue reading No Company Car Tax on Zero Emission Vehicles in 2020/21
The start of the new tax year brought significant changes to legislation. It is also P11D season: these need to be completed soon. Increasing minimum wage From April 2019, the National Minimum Wage (NMW) and the National Living Wage (NLW) rates increased. From 1 April 2019, the hourly rates of pay are as follows: Age … Continue reading New Tax Year, New Tax Rules: Are You Up-To-Date?
The tax treatment of cars under the capital allowances system changed with effect from 1 April 2018. The new rules are likely to have a significant impact on many businesses. Here we consider the changes in more detail. ‘Capital allowances’ is the term used to describe the deduction we are able to claim on your … Continue reading New Rules on Capital Allowances and Cars
The Government has announced plans to reduce the company car tax rates on low emission vehicles from 6 April 2020. For cars with no CO2 emissions, the current percentage applied to the list price to determine the benefit in kind value, is 13%. This is set to increase to 16% in 2019/20 and then fall … Continue reading Tax Charge to Reduce on Hybrid Cars
For those businesses operating as a limited company, it is important to remember that as a director, you are a separate entity from the company. This is in contrast to a sole trader or partnership, where the proprietor or partner is, in fact, the business. This difference sets the context for paying or reimbursing motor … Continue reading Cars in the Business
Businesses looking to purchase capital equipment are able to claim tax relief in the form of capital allowances. Here we outline some of the key details. What is the Annual Investment Allowance? Businesses purchasing plant and machinery are able to make use of the Annual Investment Allowance (AIA), which allows the costs for equipment, machinery … Continue reading Are You Making the Most of Capital Allowances?
There are many factors which will influence your choice of company car. These can include the distance you travel, terrain covered, the price, your lifestyle and perhaps even your clients. However, is tax ever a consideration? The start of the tax year saw an increase in the company car rates and indeed the rates are … Continue reading Tax and Your Company Car