free small business advice & information
Main Menu
Hot Links
| Article Index |
|---|
| Company Cars and Tax |
| Employee Tax |
| Tax on Fuel |
| Reducing Tax Costs |
| No Car or Your Own Car? |
| Tax for Employers |
| Buying Company Cars |
| Leasing Company Cars |
| Getting Help |
Page 3 of 9
Company Cars and Tax
2. Tax on Fuel
If any free or subsidised fuel is provided for private use in a company car, the employee is taxed on this benefit. The value of the benefit depends on the fuel efficiency of the engine, not on how much fuel is provided.
2.1 The percentage charge for each car is the same as that car's charge for car benefit.
- Cars with higher CO2 emissions have a higher percentage charge.
2.2 The percentage charge is applied to an annual figure for fuel benefit to determine the amount of taxable benefit.
- For 2010/11 the annual figure is £18,000.So for a car emitting 210gm/km, with a percentage charge of 30 per cent, the tax for a basic rate taxpayer would be £1,080 (£18,000 x 30/100 x 20/100).
2.3 Since April 2007 van drivers have been exempted from the fuel benefit charge if the van is used solely for business purposes. If there is any significant private use of the van, drivers are taxed on a benefit of £500.
Monthly Prize Draw!
Win £375 worth of advertising for your business.
Enter our competition by either:
- Signing up to the is4profit Small Business Newsletter or
- Entering your firm's details into the Small Business Directory