We have reached a fork in the road for company cars. Only you know if your employees are happy paying tax on 2, 3 or more times the employer’s cost of providing a company car. After all, 1 in 6 people still pay tax on private fuel provided for a company car; despite effective tax rates of up to 400%+.
IF you are not happy with that kind of tax/NIC bill, then the options are:
switch to a car that emits less than 51g/km of CO2 (electric and plug in electric hybrids), or switch to cash (with appropriate risk mitigation).
We hosted a 30 minute webinar to run through why this is and to talk about these options in more detail. We explain how savings to both employee and employer can be dramatic.
During the webinar, David and I referenced a couple of articles from our website and the links to these are as follows:
Private fuel charge too high:
Tax charge on a Mustang V8 now the same as a Skoda Superb:
Do we have enough batteries to go around: