The current company car tax system is structured around mileage-related bands, but from 6 April, it all stops.
Instead, a car will be taxed on its carbon dioxide emissions, measured in grams per kilometre, based on a percentage of its list price for tax purposes (P11D value).
For the majority of drivers – those covering between 2,500-17,999miles per year – the new laws will bring savings, but for drivers of larger and petrol-fuelled cars the £30 extra looks likely. HSBC’s vehicle finance arm, which has produced a number of factsheets on the new tax, agrees the costs may increase by up to £30 a month.
The Inland Revenue was recently lambasted by accountants over the ‘major catastrophe’ predicted by the industry last year, which could see almost two million company car drivers paying the wrong tax on their vehicles.
The agency was forced to publicly apologise for the problems with its computer system, which resulted in it not having calculated coding notices.
Crowe Clark Whitehill , the top 20 accountancy firm, has announced the promotion of Chris Mould to partner
The latest opinions from Accountancy Age on Making Tax Digital, and outline plans to evolve the UK's corporate governance regime
Five million taxpayers are ow using digital personal tax accounts (PTA) as part of the making tax digital strategy, HMRC said
UK-based non-doms have paid ten times more tax than the average taxpayer, raising concerns over the Brexit impact on non-dom contributions and therefore, the economy