Although having a company car can appear to be a ‘perk’, if you delve a little deeper the tax rules are becoming increasingly onerous for those directors and employees who are ‘lucky enough’ to have them….
A ‘Benefit in Kind’ tax charge is levied on the ‘lucky’ director / employee under the company car tax benefit rules and this charge is now based on the Co2 emissions with those cars (as you might expect…) emitting the lowest C02 emissions having the lowest benefit in kind charge with a sliding scale upwards to hammer those driving the ‘dirty cars’!
HM Revenue & Customs has recently updated their online calculator to take into account the scale charges for the year ahead from 6 April 2014 to 5 April 2015.
You can find the HMRC company car tax benefit calculator for the tax year 6 April 2014 – 5 April 2015 here (or copy and paste the following link into your browser: http://www.hmrc.gov.uk/calcs/cars.htm).
So if you’re contemplating getting a new car (and you’re not sure which route to acquire it? e.g. company car or personally) then this calculator could prove helpful for you in making that decision.