Where employees are provided with fuel for their own private use by their employers, the car fuel benefit charge is applicable.
The fuel benefit charge is determined by reference to the CO2rating of the car, applied to a fixed amount, currently £22,200.
For example, a CO2rating of 150g/km would create a taxable benefit of £5,994.
HMRC has confirmed that the car fuel benefit charge will increase to £22,600 for the 2017-18 tax year.
The fuel benefit is not applicable when the employee pays for all their private fuel use.
The standard benefit charge for private use of a company van is £3,170.
A company van is defined as 'a van made available to an employee by reason of their employment'.
The van benefit charge will increase to £3,230 from April 2017.
There is an additional benefit charge for fuel for a van with significant private use.
The limit is currently £598 and will increase to £610 in 2017-18.
If private use of the van is insignificant then no benefit will apply.
Source: HM Revenue & Customs | 03-01-2017 For up to date financial news visit http://keens.co.uk/news/
Posted by: Keens Shay Keens MK LLP
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Milton Keynes Chamber of Commerce Limited published this content on 05 January 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 05 January 2017 12:32:08 UTC.
Original documenthttp://www.chambermk.co.uk/news/article/company-cars-and-vans-taxable-benefits
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