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Benefits Code II: Not Low Paid Employees |
21 |
and this may to be lowered in later years. The CO2 figure is then used to find the appropriate percentage for that car for that year on a table (minimum 15%); the taxable benefit is that percentage of the price of the car.98 An expensive car with high CO2 emissions and high business mileage will have a higher tax charge than under the old rules; an expensive car with low emissions and a low business mileage may well be cheaper than now. A cheap car with low CO2 emissions will certainly be cheaper than now. Mondeo man may well find little difference. Special rules apply to diesels where a surcharge applies.99 There are special rules for bi-fuel cars; here the lowest emission figure is taken.100 If a disabled employee has to have an automatic rather than a manual transmission, the extra emission is excluded.101 If the car has no CO2 emission figure at all, eg it is an electric car, the percentage is based on the cylinder capacity of the car.102 The same basis is used for cars registered before 1 January 1998.103 |
17A.4.1.4 Off-Setting Payments |
Sums paid by the employee to the employer for the year can be set against the cash equivalent of a company car, but only if the employee is required to pay the sums as a condition of the car being available for his private use (including use by members of his family or household).104 Sums paid for other purposes cannot be offset. A sum paid to obtain a more expensive car does not reduce the benefit.105 An insurance premium paid for a company car was held to be payable to insure the car and not for its use; since the scale charge covers the costs of insuring the vehicle this seems to be an unimaginative (and certainly non-purposive) construction of the statute.106 |