Company car tax can be confusing at the best of times, which is why more and more businesses are seeking guidance and support in picking the right make and model to fit their needs and budget.
According to tax partner Julia Whelan, at tax specialists Curo Chartered Accountants, there are many businesses across the UK wasting thousands of pounds annually, simply by purchasing and running company vehicles which are inefficient for tax purposes.
But what is company car tax and how can organisations become more shrewd and selective in order to save money whilst maintaining their operational efficiency?
Advises Julia, “there are several factors for both employers and employees to consider when choosing a company car, including
- how and why the make and model of a car affects its tax rate
- legislation that introduced new car tax bands
- the Government subsidy which encourages eco-friendly driving
- the vehicles that could save you thousands of pounds”
When it comes to company car tax, choosing a car which is cost-effective can be a long and time consuming process. Get it wrong and you could be just throwing money away.
Adds Julia “Of course, if employers don’t choose wisely, they may end up with unhappy employees who face higher tax bills”.
Businesses need to know the facts when choosing their cars otherwise the financial implications could hit them hard – picking the right vehicle means they are less likely to be ‘driven round the bend’ with P11ds and tax returns!
If you would like advise on company car taxation from both the employer and employee perspective, please contact Julia Whelan on 01527 558539 or [email protected].