![]() Note that this is a different definition of low emissions from that used for capital allowances. However, the optional remuneration rules do not apply if the company car has CO2 emissions of less than 75g/km. ![]() Where an employee has a car provided under salary sacrifice, the benefit is valued as the higher of the amount of salary given up or the taxable benefit. However, there have been significant reductions in this charge from April 2020 with electric-only cars falling to 0% in 2020-21 as well as reductions for electric hybrids depending on their electric-only range.įor example, a VW Passat GTE with CO2 levels of 32 g/km and an electric only range of between 30 and 39 miles would have a benefit rate of 12% in 2020-21, equating to a taxable benefit of approximately £4,300. For 2019-20, low emission cars (up to 50g/km) are taxed at 16% of list price, or 20% for diesels. The percentage of list price of a company car which is taxed as a benefit is determined by the CO2 emissions of the vehicle. ![]() ![]() So exactly what are the tax benefits and is now the time to consider the move to zero or low-emission vehicles? P11D/Class 1A National Insurance The tax regime for cars is designed to encourage the use of low emission vehicles.
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