How to Stay Safe from HMRC
Business cannot occur without travel and the company car is the benefit of choice for business travel. It is also a major component of your employee’s remuneration package. However company cars are extremely expensive to both employees and employers with the taxation of company cars (and company car fuel) ever rising.
Our consultants can undertake a review of your current company car scheme and offer alternative schemes where dramatic savings can be made.
Under these schemes it is your employee who enters into the contract for the provision of the company car instead of you the employer. Such schemes benefit from the fact that there is no company car or fuel tax charge for the employee, nor any corresponding Class 1A NIC charge for the employer.
Our consultants will maximise savings to both the employer and the employee by factoring in tax efficient payment options. These can include the employer lending the employee up to £10,000 as a loan to finance the car (where appropriate, this can be achieved on a tax & NIC free basis) and paying HMRC Approved Mileage Allowance Payment rates for any business travel.
We will also ensure that your scheme is designed to receive full HMRC clearance and will assist you in the development and delivery of your communications strategy.
Get in touch.