Fleet News

Corporation Tax bonus for small fleets

SMALL fleets have received a tax bonus from the Government, following the Chancellor of the Exchequer's decision to reduce the corporation tax starting rate from 10% to zero for companies with taxable profits below £10,000.

In addition, the small companies' rate is reduced from 20% to 19% for companies with taxable profits between £50,000 and £300,000.

Between these two thresholds, marginal tax relief will apply, easing the transition from the starting rate to the small companies' rate for companies with profits between £10,000 and £50,000.

To calculate the marginal relief available, the Inland Revenue has created the fraction 19/400. Marginal relief also applies to companies with profits of between £300,000 and £1,500,000. The fraction used in the calculation of this marginal relief will be 11/400.

The profits limits may be reduced for a company which is part of a group or has associated companies.

Leave a comment for your chance to win £20 of John Lewis vouchers.

Every issue of Fleet News the editor picks his favourite comment from the past two weeks – get involved for your chance to appear in print and win!

Login to comment


No comments have been made yet.

Compare costs of your company cars

Looking to acquire new vehicles? Check how much they'll cost to run with our Car Running Cost calculator.

What is your BIK car tax liability?

The Fleet News car tax calculator lets you work out tax costs for both employer and employee