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Vehicle Registration Document) of the car. You then pay tax at 20%, 40% or 45% on this charge depending on your overall tax position. The tax rates applicable to Scottish taxpayers range from 19% to 46%.
The table below shows the percentages for 2022/23. Reduced percentages apply to lower emissions cars and performance-related bands apply for hybrid vehicles with emissions up to 50 g/km depending on how far the hybrid vehicle can travel under electric power.
02
90 - 94 23
mileage allowance for the business travel I do in my own car? In most cases, you are more likely to be better off if your annual business mileage is high.
Another frequent question is: would I be better
off having my employer provide me with fuel for private journeys, free of charge, and paying tax
on the benefit, or bearing the cost myself? In this case, you are only likely to be better off taking the free fuel if your annual private mileage is high. However, the cost to the employer of providing this benefit is likely to be high.
Every case should be judged on its own merits, and considered from both the employee’s and the employer’s point of view.
Fuel for private travel
If your employer provides fuel for any private travel, there is a taxable benefit, calculated by applying the same percentage used to calculate the car benefit to the fuel benefit charge multiplier of £25,300. You can avoid the car fuel charge either by paying for all fuel yourself and claiming the cost of fuel for business journeys at HMRC’s fuel-only
  For every additional 5g thereafter add 1% until the maximum percentage of 37% is reached.
  For fully diesel cars generally add a 4%
supplement (unless the car is registered on or after
1 September 2017 and meets the Euro 6d emissions standard) but the maximum is still 37%. For emissions of 75g/km or more if the CO2 figure does not end in a 5 or a 0 round down to the nearest 5 or 0.
 Pooling your resources
Some employers find it convenient to have one or more cars that are readily available for business use by a number of employees. The cars are only available for genuine business use and are not allocated to any one employee. Such cars are usually known as pool cars. The definition of a pool car is very restrictive, but if a car qualifies there is no tax or NIC liability.
Mileage allowance vs free fuel
A frequently asked question is: would I be better off giving up the company car and instead claiming
 2022/23
     CO2 emissions (g/km)
  % of list price taxed
   1 - 50 (split by zero-emission miles)
      Electric range >130
70 - 129 40 - 69 30 - 39 <30
  2 5 8 12 14
 51 - 54 15
55 - 59 16
60 - 64 17
65 - 69 18
70 - 74 19
75 - 79 20
80 - 84 21
85 - 89 22
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Tax and Employment































































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