Benefits in Kind

YAZZA_3

I need some help with one my essay on taxation and I can' find any specific info on the web:

I would just like to know if car tax and insurance is a taxable benefit?

morgani

Is the situation where either:-

1. the employee is provided witha company car and the RFL and Insurance has been paid

Or

2. Is it a private car where the employer has paid the employees RFL and insurance?

1. No just car benefit on value and multiplier based on CO2 emmissions
and fuel benefit if this arises (i.e employer pays fuel costsand employee
does not reimburse all private fuel

2. Yes this would be as its for private use.

Which accountancy / taxation body are you with as the appropriate literature may be available through them. I have recently covered this as I am studying my final year of AAT.

YAZZA_3

morgani wrote: »

Is the situation where either:-

1. the employee is provided witha company car and the RFL and Insurance has been paid

Or

2. Is it a private car where the employer has paid the employees RFL and insurance?

1. No just car benefit on value and multiplier based on CO2 emmissions
and fuel benefit if this arises (i.e employer pays fuel costsand employee
does not reimburse all private fuel

2. Yes this would be as its for private use.

Which accountancy / taxation body are you with as the appropriate literature may be available through them. I have recently covered this as I am studying my final year of AAT.

Yes it is a company car and from reading the case study, the comapny automatically doesn't pay for his fuel but he can claim back for the expenses for business trips. So I guess, the rest aren't a txaable benefit?

Im studying Bsc Accounting so we don't have specific body. Thanks for your help.

Bean_Counter

YAZZA wrote: »

Yes it is a company car and from reading the case study, the comapny automatically doesn't pay for his fuel but he can claim back for the expenses for business trips. So I guess, the rest aren't a txaable benefit?

It sounds as if there is a taxable car benefit but no fuel benefit if the company is not paying for his private fuel.

So the benefit is noted on the P11D at the end of the year. In terms of the essay, don't forget to mention that a P11D(CAR) should be completed quarterly for all employers who either start to receive a car, change their car or stop receiving a car. The idea is that HMRC should adjust their tax codes earlier than waiting until the year end.

Also mention that the company has to pay Class 1A national insurance on the car benefit (and fuel benefit is there were any). Also mention the dates that the P11Ds have to be submitted by (5 July) and Class 1A NI paid (19 July.)

YAZZA_3

Bean_Counter wrote: »

It sounds as if there is a taxable car benefit but no fuel benefit if the company is not paying for his private fuel.

So the benefit is noted on the P11D at the end of the year. In terms of the essay, don't forget to mention that a P11D(CAR) should be completed quarterly for all employers who either start to receive a car, change their car or stop receiving a car. The idea is that HMRC should adjust their tax codes earlier than waiting until the year end.

Also mention that the company has to pay Class 1A national insurance on the car benefit (and fuel benefit is there were any). Also mention the dates that the P11Ds have to be submitted by (5 July) and Class 1A NI paid (19 July.)

Yeah, I don't think there is no fuel benefit as they company only pays petrol for business trips?

Thanks for the suggestions, will definitely write the points You been a great help.