What do you understand by the term company car taxation? Just as the name suggests it is the amount of money or expense that you would be incurring to use the car for private purposes. The car that you use is not yours since the company that you work for gives it to you to make sure that the business assignments are carried out with ease. This article takes you through information that you should know about taxation on cars. Thus, it is expected that after this critique you should know whether it is advantageous to accept a company car when offered one.
Tax calculator
A tax calculator is normally used by the company to come up with a figure that you will be paying as tax. The calculator is programmed to consider the fuel that the car uses. In most cases, if you use the car for personal use rather than business use, you will incur huge bills to pay.
Basis for calculation of tax
Certainly taxes on cars cannot be summed up without considering several factors here and there. Thus to come up with a certain figure to pay as tax, the following factors will have to be considered:
The actual price of the car and whether it comes with accessories
CO2 emission levels of the car
Fuel consumption
If you would be paying the full amount to acquire the car
Private use payments that you will incur in using the car
Company car taxation will have to follow the above factors in coming up with a figure that you will be paying for the car.
Using the company car for business purposes
There are special cases that you will have to be exempted from paying taxes on cars. For example if you use the car to carry out business tasks, you will never be imposed any taxes. The question that you are probably asking yourself is how the company will prove you never used the car for personal reasons. This is easy. Mileage and track systems installed in company cars will help in knowing the use into which the cars were put. Thus in company car taxation, it is quite difficult to evade tax.
Replacement car
It is possible to claim to be offered another car to act as replacement. This happens on condition that your requested car is not available. The good thing about this idea is that you will not renew any terms of the contract. Thus, the contract that you had initially filed will be used to calculate tax that you will be paying when using the replacement car. Before being given a replacement car, you are normally given a period of 30 days after which you can make your request. Company car taxation strives to ensure that the deal is sealed in the best way possible. Thus, it ensures you get the car that you demand for.
With the above information, you should make a prudent verdict as to whether or not you will settle for a company car deal that comes your way.
Tax calculator
A tax calculator is normally used by the company to come up with a figure that you will be paying as tax. The calculator is programmed to consider the fuel that the car uses. In most cases, if you use the car for personal use rather than business use, you will incur huge bills to pay.
Basis for calculation of tax
Certainly taxes on cars cannot be summed up without considering several factors here and there. Thus to come up with a certain figure to pay as tax, the following factors will have to be considered:
The actual price of the car and whether it comes with accessories
CO2 emission levels of the car
Fuel consumption
If you would be paying the full amount to acquire the car
Private use payments that you will incur in using the car
Company car taxation will have to follow the above factors in coming up with a figure that you will be paying for the car.
Using the company car for business purposes
There are special cases that you will have to be exempted from paying taxes on cars. For example if you use the car to carry out business tasks, you will never be imposed any taxes. The question that you are probably asking yourself is how the company will prove you never used the car for personal reasons. This is easy. Mileage and track systems installed in company cars will help in knowing the use into which the cars were put. Thus in company car taxation, it is quite difficult to evade tax.
Replacement car
It is possible to claim to be offered another car to act as replacement. This happens on condition that your requested car is not available. The good thing about this idea is that you will not renew any terms of the contract. Thus, the contract that you had initially filed will be used to calculate tax that you will be paying when using the replacement car. Before being given a replacement car, you are normally given a period of 30 days after which you can make your request. Company car taxation strives to ensure that the deal is sealed in the best way possible. Thus, it ensures you get the car that you demand for.
With the above information, you should make a prudent verdict as to whether or not you will settle for a company car deal that comes your way.