Car benefit changes 2014/15

Q: Can you summarise what the changes to company car and van benefits are from 6 April 2014 please?

1st April 2014

A: From 6th April 2014:

Company cars

  • The car fuel benefit charge multiplier will increase from £21,100 to £21,700
  • The lower threshold will be reduced from 115g/km to 110g/km
  • The lowest appropriate percentages are still 0 per cent and 5 per cent
  • An 11 per cent charge will apply to cars with CO2 emissions of 76g/km to 94g/km, up from 10 per cent last year
  • The appropriate percentage will increase by 1 per cent for all vehicles with CO2 emissions between 95g/km and 210g/km, to a maximum of 35 per cent

Vans

  • The van fuel benefit charge multiplier will increase from £564 to £581.
  • The van benefit will increase from £3,000 to £3,090.

The rules and implications of company vehicles are far reaching, so you would be advised to seek professional advice from your local TaxAssist Accountant before acquiring a new vehicle. 

By Jo Nockels

Disclaimer: The information provided is based on current guidance (at date of publication) from HMRC and may be subject to change. Any advice shared here is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this information, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

Contact us today to make an appointment at your local office

Submit an enquiry