John Whiting assesses the benefits of company cars as eco-friendly policies tax drivers

Article Abstract:

The UK government imposes heavy taxes on company car drivers, but it may still be worth taking the option to have a company car, rather than a cash alternative. This is because driving a company car frees the user from the worry of paying for insurance, repairs and road tax. The Fixed Profit Car Scheme is a useful option for people who do not have a company car but use their own car for business travel. Under this scheme, any reimbursement made to the employee is not taxable as a benefit as long as it is within designated Inland Revenue limits.

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Getting mileage from company cars

Article Abstract:

Many UK companies are now offering employees the option to take money instead of a company car. Running a company car can attract certain tax penalties, especially if less than 2,500 miles a year are driven for business purposes. However, many employees still prefer to take a company car, as they do not have to make the investment in a car themselves. When deciding whether to take money or a company car, it is also important to consider the tax implications of schemes such as business mileage payments and loans to buy a private car.

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The taxman's a party-pooper

Article Abstract:

Corporate entertaining will always attract some sort of tax penalty in the UK. Entertainment spending is basically tax disallowable, with a few very small exceptions. Entertainment for staff is tax-deductible for the employer, but can lead to a benefit-in-kind income tax charge. There may also be a tax liability if an employee receives a benefit from a party other than the employer. This will apply to an outright gift, a prize or something similar.

Taxation, Column, Business entertaining

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