The new tax year always brings a host of changes to tax rates and allowances, and one of the questions we get most is about the changes to the company car and van benefits, so here’s a quick update for the tax year about to start 2014-2015… By the way, this car is my son’s dream car (Probably everything to do with Top Gear but perhaps not a great choice for practicality or tax!)
Company Car Benefit
As in previous years this is based on the vehicle’s CO2 rating and, equally as usual, the percentages are slowly increasing so that the taxable benefit in kind is creeping up. To access HMRC’s company car calculator and find out what your current, or future, car might cost you in tax, click here
A point to note is that the 3% diesel supplement will be removed from 6th April 2016, meaning that from that date diesel cars will be subject to the same levels of tax as petrol cars.
Car Fuel Benefit
The car fuel benefit multiplier will increase from £21,100 to £21,700 for 2014/15.
After many years set at a fixed £3,000, this is now going to start increasing in line with inflation year-on-year. The van benefit charge has been set at £3,090 for 2014/15.
Van Fuel Benefit
The van fuel benefit charge will increase from £564 to £581 for 2014/15.