Company car capital contribution calculator
A company car is taxed according to its list price. This can be reduced if you make a capital contribution towards the purchase of the car. This calculator shows you how much tax could be saved.
Company cars
Where you are provided with a car by your employer, a company car benefit will arise. This is calculated by multiplying the list price of the car (when new) by the relevant percentage - which depends on the CO2 emissions figure.
The list price in this calculation can be reduced if you make a capital contribution to the cost of the car. The maximum deduction available for tax purposes is restricted to £5,000.
Calculator
Our calculator works out the annual tax saving for the employee and the NI saving for the employer. You just need to know the capital contribution and the appropriate benefit in kind percentage. In order to work out the tax saving, you also need to know the rate that the employee or director pays tax at.
Related Topics
-
Self-employed set for penalty reprieve
Over 1m people missed the 31 January filing deadline last week and will shortly be receiving automatic £100 penalties as a result. However, HMRC has announced that the penalty won’t be enforced for the self-employed - but only in limited circumstances. Are you eligible?
-
Can you claw back enhanced maternity/adoption pay?
If you agree to pay more than the statutory minimum during maternity/adoption leave, can you ask an employee to sign an agreement under which they agree to pay back the enhancement in certain circumstances?
-
Court of Appeal shuns Upper Tribunal’s interpretation of salaried members rules
The Court of Appeal has sided with HMRC regarding the definition of “significant influence” in respect of the salaried members rules. What happened and what does this mean for members of limited liability partnerships (LLPs)?