Company Car 2017

Cars with lower emissions incur lower levels of tax.

Company car 2017. Company car mileage rates can only be used for business travel in a company car. In 201718 youd pay company car tax as follows. A company car allowance is a predetermined sum paid to an employee as compensation for driving his or her own vehicle for business reasons. And drives the car 6 days a week strictly for work purposes and is not allowed to drive outside of the local area.

You pay tax on the value to you of the company car which depends on things like how much it would cost. Using a company car for business purposes is not considered a fringe benefit while personal use is a taxable fringe benefit. Diesel engines range from a 16 litre to 20 litre units. How should the value be deducted if the company car is wrapped with the company logo security squad car and the employee has to pay for gas maintenance and repairs.

Our former car of the year the audi a3 is a fantastic buy for private and company car buyers alike. Youd multiply your cars p11d value of 20000 by the bik rate since the car has a petrol engine and emits 50gkm of co2 the bik rate is 9 percent. Mileiq says companies use car allowances to minimize accounting costsonce an employee has been allocated a car allowance that amount is simply added to the employees paycheck. Personal use of a company car includes commuting to and from work.

Select one of the company car programs participating markets united states canada mexico. For claiming business travel expenses in your personal car our article about using your private car for business miles can help. With company cars the bill is a percentage of their cars p11d value calculated according to its co2 output.