Tax Implications of Providing Company Cars
18 February 2020
Offering a company car can be a valuable and attractive perk to any valued employee but it is not necessarily tax-free for them.
For more information about company cars and the factors affecting whether or not tax is due, read our guide Tax Implications of Providing Company Cars. The amount of tax an employee will have to pay will depend on a number of factors:
- any private use allowed
- fuel type
- carbon dioxide (CO2) emissions
- car manufacturer and model
Another topical issue is the provision of zero and low-emission cars where HMRC has reduced the benefit-in-kind percentage from 16% to 0% from 6th April 2020. With savings like this, it is easy to see why many employees and employers are making the switch to electric.
Talk to us if you need more information about providing employee benefits.