Factors determining the company car tax you are liable to pay

Are you using your company car for your personal purpose? An employee has to give an income tax if he/she gets a company car for private use. Lots of things are taken into consideration in order to compute the tax that you’re liable to pay for using a company car. As for instance, the UK government has enforced a new CO2 based car tax rates. You can use a car tax calculator to compute how your tax rates vary with the amount of CO2 emitted from your car.
   
Company car tax calculator – What it means

The company car tax calculator is used to compute the benefit in kind of value of the company vehicle along with the car fuel benefit. You can use this calculator to have an idea regarding the income tax that you’re liable to pay for getting a company car for private use.

Factors determining the company car tax       

Here are some factors that determine the amount of company car tax that you’re liable to pay.

The approved carbon dioxide emission guides of the company car
Whether or not you need to make a lump sum payment for the vehicle
The list price of the vehicle
Whether or not there are any accessories in the car
The part of the year during which the company car was available for your private use
Whether or not you need to pay to the company for private use of the company’s vehicle

You should know that you don’t have to pay any tax when you use the car for business purposes. As for example, you’re not liable to pay tax when you drive down to meet clients.

How CO2 emissions affect tax calculation

CO2 emissions, an important aspect of company car tax calculation, have come into effect in order to reduce the amount of CO2 in the atmosphere. It means that you’ll have to pay more tax if your car emits relatively more carbon dioxide into the atmosphere. You can opt for a greener vehicle in order to reduce the car tax amount. UK government has designed this tax in order to reduce the usage of cars that are responsible for causing high rate of pollution.

It is advisable that you use a car tax calculator to compute how an increase in CO2 emissions can affect the tax that you’re liable to pay for getting your company car for private use. You can browse through the internet to find such a calculator that can help you in your tax calculation.


Keyphrase: car tax calculator, company car tax calculator

Description: Certain factors determine the tax you need to pay when you get a company car for private use. You can use a car tax calculator for computing the tax amount.