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Employees need to get used to paying more for their cars, warns RICHARD CURTIS
KEY POINTS
- The employee’s cost of a company car goes up.
- Security enhancements are removed from the calculation.
- The end of the zero benefit charge is confirmed.
- Capital allowances emissions limits are reduced.
- The 35% top rate benefit in kind charge rises to 37%.
Many years ago HMRC (Inland Revenue as it then was) realised that the taxable benefit in kind of an employer-provided or company car was undervalued and over a period of years the department jacked up the level of taxable car and car fuel benefits.
The company car option went from being a ‘no-brainer’ to something that needed some more thought particularly where business mileage in one’s own car could generate a useful tax-free mileage allowance instead.
This was reflected in the fact...
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