Jfwhite.co.uk
Title
JF White Chartered Accountant - Introduction
Description
The decision for owner-managers of limited companies is whether to have their own car and those of their employees supplied by the company i.e. a 'company car' or for cars to be owned privately with the company paying for any business mileage.
Over the last two years both company car and fuel benefits, together with the Employers' NIC, have been increased by up to 45%. This means that a typical company car driver could now have taxable benefits of more than £8,500 (which excludes employer's NI). Furthermore the tax cost of most company cars will increase significantly from 6 April 2002 when the basis of taxation becomes the level of carbon emissions.
There are a large number of variables involved in making the company car decision and we use software to evaluate these and produce a report showing the best tax saving plan. This has enabled many company car drivers to save between £1,000 and £4,000 net of tax per annum on one car.
