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car-benefit-assessment

Car Benefit Assessment 2016/17

Whether your employees drive a company car or use their personal car for work and claim back their mileage, you may be entitled to tax relief and allowances on the money you pay them. Our expert team will be able to assess your requirements and work out how much tax relief you should receive.

Taxable benefit is chargeable value multiplied by chargeable percentage.

Chargeable value: initial list price of car (incl. accessories).

Cars

Taxable benefit: Chargeable value multiplied by chargeable %.

Chargeable value:

Initial list price of car (including most accessories), reduced by any capital contribution (maximum £5,000) by employee when the car is first made available.

Chargeable percentage:

CO2 emissions g/km Petrol Diesel
0-50 9% 12%
51-75 13% 16%
76-9 17% 20%
Above 94 Add 1% for every 5g/km
Above 200g/km (petrol)/ 185g/km (diesel) 37% maximum

Vans

Chargeable value of £3,230 (2016/17 £3,170) if private use is more than home-to-work.

Fuel

Employer provides fuel for private motoring in an employer-owned:

Car: CO2-based percentage from above table multiplied by £22,600 (2016/17 £22,200).

Van: £610 (2016/17 £598).

Employee contributions do not reduce taxable figure unless all private fuel is paid for by the employee (in which case there is no benefit charge).

Tax-free mileage allowances

Employee’s own transport per business mile
Cars first 10,000 miles 45p
Cars over 10,000 miles 25p
Business passengers 5p
Motorcycles 24p
Bicycles 20p