Fleet News

Company Car Tax Features - Page 2

  • The P11D value of a car will help shape an employee’s tax contributions and is an important consideration for fleets.

  • Over recent years the importance of CO2 emissions has risen dramatically and the need to lower CO2 emissions has been a priority.

  • Benefit in kind tax or company car tax as it is sometimes known is based upon the P11D value of the car.

  • Since April 2009 new rules designed to incentivise lower CO2 company cars were introduced that have a direct impact on companies’ bottom lines.

  • Forward planning is vital to avoid future tax rises as drivers and fleets choosing cars now face rising bills if they don’t take account of CO2 levels.

  • Light commercial vehicles, including double-cab pick-up trucks with payloads in excess of 1000kg, are classed as a benefit in kind if they are also provided for private use. Unlike cars, tax on use of commercial vehicles provided by an employer is levied at a flat rate.

  • Provision of free fuel for private mileage has faced repeated attempts to curtail it during the last 10 years with a very small percentage of employees being offered the perk.

  • Companies are liable to pay Class 1A National Insurance contributions where staff are provided with vehicles on which they are taxed for private use.

  • The rules surrounding capital allowances for company car tax incentives worth hundreds of thousands of pounds for companies running low emission cars.