car and van tax
The question of taxation is relevant to the employer and employee. The car/van selection available through a company vehicle policy impacts on the individual's pocket. Likewise, the car/van ultimately selected impacts on the company in many different ways. It can be a difficult choice for both parties.....so let alliance assist and act as your mediator - call 01480 475000 now for further assistance.
Employer
- alliance recommends that your financial advisor provides their professional advice on the suitable funding arrangements for your company fleet. However, we can supply information on a number of different options and explain why in our opinion certain products may be suitable.
- We are able to supply a range of vehicles based on whole life cost that takes into consideration the Class 1A National Insurance Contribution payable on the employees car benefit. (an item all too often overlooked)
- alliance recommends that vehicles are selected which are not only cost effective for the company but also suit your employees. It is good policy therefore to include in your selection criteria clear information on the car/van benefit-in-kind payable by the employee.
- Assuming the vehicle falls into the definition of a benefit applied by H M Revenue and Customs then an employee will pay benefit-in-kind regardless of the means of funding adopted by the company: contract hire, leasing, contract purchase, hire purchase or long term rental. See HMRC for further guidance.
Employee
- We would not recommend that you select a company vehicle purely on the basis of its low benefit-in-kind rating as you could soon become dissatisfied. However, it should be a consideration and you may be in for a pleasant surprise.
- Manufacturers have been working hard to reduce the taxable rating of their models so the situation is constantly improving. To calculate the impact of company car benefit use the following link (http://www.hmrc.gov.uk/calcs/cars.htm. If you would like some help with this then please call 01480 475000 and we will be glad to assist
No liability is accepted on advice given by alliance. Information is for guidance only and decisions should not be made soley on such information, alliance always recommend you speak to your local HRMC office for full clarification.
Useful information is available from