Tax and company cars
The What Investment Guide to Personal Tax takes you through all you need to know about taxing your company car.
There are certain rules to calculating if you owe tax on your company car and here we lead you through all the data you may need. However, real calculations can be done here.
The taxable value of your company car is usually its price when new multiplied by a percentage based on the carbon dioxide (CO2) emissions figure for your type of car. There are five steps to arrive at the taxable value:
1) Take the list price of your car when new
2) Find out the CO2 emissions figure for your car
3) Use the Revenue tables to find out the percentage corresponding to that CO2 emissions figure
4) Increase or reduce the percentage by any supplement or discount
5) Multiply the list price by the percentage
If you had the car for only part of the year, you can scale down the taxable value in proportion to the number of days in the tax year that it was not available. And, you can deduct anything you pay yourself for use of the car.
For further information visit the HMRC website or order a copy of the What Investment Guide to Personal Tax here.