Employers investing in new vans will be rewarded for choosing zero-emission models. Not only will employees be able to use the vans privately without having to pay tax on the benefit, there will be no Class 1A National Insurance for the employer to pay either. As an added bonus, because HMRC do not regard electricity as a ‘fuel’ for car and van benefit purposes, if the employer pays the cost of electricity for private mileage in a company van, there is no fuel charge to worry about either.
Please follow the link below for more information:
Tax on company benefits: Tax on company cars – GOV.UK (www.gov.uk)
Check or update your company car tax
Tell HM Revenue and Customs (HMRC) if your car or fuel details change. You can check or update your company car tax online, for example if:
- you get a company car or give one back
- your employer starts or stops paying for fuel for you to use personally
If a change affects the value of the car, HMRC will update your tax code so you pay the right tax.
Need more information?
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Our fantastic team at A&C Chartered Accountants are here to help.
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