Employee cars and fuel

Employees usually depend on their employers to come up with a tax-efficient pay package. But there are some points which employees should watch out for, in case the employer hasn’t noticed.

The benefit of having the employer provide free fuel for private motoring in a company car is now heavily taxed, with promises of more increases above the rate of inflation. On the other hand, the price of the fuel itself has been so high over the last year that the tax charge may still represent good value. If the figures suggest that the benefit should be replaced by something else (for example, a compensatory pay increase), then it is important to change the package before 6 April – if the benefit is available for even part of the fiscal year, it is taxed for the whole of it.

Actionpoint:

ARE YOU PAYING MORE TAX THAN YOUR BENEFITS ARE WORTH?

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