Company Car Tax Definition Any dutiful citizen pays his or her tax to the government on time. Taxes include income tax, house tax, payroll taxes, sales tax, customs duties and gift tax to name a few. Though they are called by different names in different countries, they are rendered to the government and used for the benefit of the people of that specific country.
Company Car Tax If your employer gives you a car for personal and official use, you are supposed to pay company car tax. This tax is paid based on personal usage. If you are given any fuel allowance, tax is levied on it also. Payable car tax is calculated based on a few factors. Use this calculator to calculate your company car tax! Steps to use our Company Car Tax Calculator:
Enter the list price of the car you use (company offered car).
Input the level of Co2 emissions of the car.
Now enter the fuel type used by the car (petrol, diesel, electric or any other)
Input your employee tax rate
After you enter these details just press ‘calculate’ and you have the figures instantly.
The basic parameters required to calculate the car tax are normally Co2 emission, list prices of the car and type of fuel. By feeding in the requested information, you can calculate the tax payable for different models easily. The tax can be calculated monthly and annually depending on the payment plan that you choose. When you use the company car for your personal purpose you have to pay tax for having this benefit. How much has to be paid can be calculated using a Company Car Tax Calculator. This calculator lets you know the benefit in kind offered by the employer and fuel benefit. It also gives you an idea of how much you are liable to pay for the car allowance and fuel benefit. Usually the taxation rate of the car is somewhere between the range of 15% to 50% of the car’s list price.
Company Car Tax Specifications The annual car tax rates are decided on the type of fuel (diesel or petrol) and the Co2 emission rate of the car you use. These details are usually noted in the car’s log book. Following the 2011 budget, a few changes have been made on the Vehicle Excise Duty or company car tax. For cars emitting less than 130g/km of Co2, no road tax for the first year need be paid as per the previous policy. Otherwise, no taxes have to be paid on cars emitting less than 100g/km. Tax is calculated on a few factors. Cars that were registered before the 1st March 2001 are taxed on the basis on the engine size whereas, those registered after the 1st March 2001 are taxed based on their Co2 emissions.
Company Car Tax Calculator This free calculator is a device or tool that helps to calculate the amount of tax you are supposed to pay for the use of your company’s car. To calculate, it the parameters taken into consideration are car list price, Co2 emission, fuel type and the interest rate offered by the company. Use our online calculator and get the accurate estimate of the taxes you have to pay for your personal usage of a company car. By using this calculator, you can be free of worry about unknown pending balances that create unwanted stress.
How to Calculate Company Car Tax Let's be honest - sometimes the best company car tax calculator is the one that is easy to use and doesn't require us to even know what the company car tax formula is in the first place! But if you want to know the exact formula for calculating company car tax then please check out the "Formula" box above.