Okay, nothing is certain as death and taxes. Therefore, we might as well take the trouble to find out with company cars exactly what is taxable and how is it calculated? It will be in this website somewhere. If not we shall point you in the right direction.There are many taxes affecting company cars, after all this is the United Kingdom. It makes sure if you have the benefit of using a car to move around, the Exchequer profits at literally every turn.There are the following:
- Hydrocarbon oil duty commonly referred to as ‘fuel duty’
- Value Added Tax on the fuel duty
- Value Added Tax on the rest of the fuel price
- Value Added Tax on new cars, used cars, accessories, parts, servicing etc.
- Vehicle Excise Duty
- Vehicle first registration fee
- Benefit in Kind income tax
- London congestion charge
- Other road tolls such as M6 Toll
- Bridge Tolls such as the Dartford Crossing
- Workplace parking levies
In the future many of the above taxes will probably be replaced by road pricing, a government tax charge per mile. This will be to offset against the loss of revenue as cars become cleaner, more efficient and electric. I suppose we could argue that road tolls, such as M6 Toll, are not strictly taxes. However, there is so much income raised from motorists the government could have easily funded the M6 relief road, so to me it looks like a tax.
There is also the various tax treatments and writing down allowances of company cars which makes funding options so important when it comes to controlling costs.
With taxation, things change so quickly, so we have provided links to the relevant government page for many of the figures, so you are up to date.