Personal Tax Accountant

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Personal Tax Advice and Compliance in Abingdon, Oxfordshire, UK

Oxon accountancy is one of the Oxfordshire’s leading accountanting form. we are ideally placed to ensure you meet basic compliance as well as recommend ways to mitigate your tax liability.

Based in Abingdon just outskirts of OXFORD , we deliver a value-added service to private and high net worth individuals, executives, City professionals, entrepreneurs, sportsmen/women, entertainers, property/land owners, members of the legal and medical professions.

  • Personal tax advice and planning
  • Personal tax returns, self-assessment and compliance
  • Remuneration planning
  • Inheritance tax advice
  • Trusts and estates
  • Non-resident landlords
  • Domicile and residency filings
  • Immigration and expatriate, including tax advice for overseas citizens living or working in London
  • Personal tax investigations

Tax implications of providing company cars

Does it pay off to provide zero-emission cars?

Offering a company car as a benefit can be a valuable and attractive perk to any valued employee.

Unfortunately, it is not necessarily a tax-free perk and it may be liable for PAYE because HMRC considers the private use of a company car to be a benefit-in-kind.

In some cases it can even be quite costly to the employee, especially if the company also pays for the fuel.

Factors including fuel type, carbon dioxide (CO2) emissions, the car manufacturer and model, and how long the car is available in the tax year will all affect the amount of tax the employee has to pay. In addition, the employer may have to pay employer national insurance contributions (NICs).

For those looking to reduce their carbon footprint, providing a zero or low-emission car to a worker can be highly tax-efficient.

To understand why this is the case, you need to understand how the car benefit-in-kind is calculated.

A company car can be any vehicle – car, van or motorcycle – which is provided to the employee for business and private travel. Different rules apply to company vans and are not covered in this article, which is only about company cars.

Calculating tax on company cars

When a car is provided to an employee for private use this is considered a benefit-in-kind by HMRC.

To calculate the amount of tax an employee has to pay on the benefit-in-kind, a taxable value needs to be calculated first.

This depends on various factors determined by the car type and whether it was available to the employee for the whole tax year.

The benefit-in-kind taxable value is essentially the vehicle’s list price multiplied by the benefit-in-kind percentage.

If the car was only available part way through the tax year, this is reduced by the number of months the car was unavailable.

For example, a car with a £40,000 list price and benefit-in-kind percentage of 26% available for 10 months of the tax year would have a benefit-in-kind taxable value of £8,667 read more..

Personal tax changes for 2020/21

What you need to know for the tax year.

The Government left it to the very last minute to announce its tax plans for 2020/21. Fortunately, Chancellor Rishi Sunak had few surprises up his sleeve in last month’s Spring Budget.

Three of the main taxes in the UK – income tax, corporation tax and VAT – saw their rates and thresholds frozen or, for income tax thresholds in Scotland, merely tweaked in line with inflation.

However, there were changes to pensions and capital gains tax. Here’s what you need to know from April 2020

Free Initial Tax Meeting – Contact Us

For further information, or to arrange a free initial meeting, please contact Rupinder Sharma 01235 250011.

Rupinder has over 15 years of experience in tax and advises high net worth individuals, City professionals and executives with intricate remuneration packages.

Phone: 01235 250011
Fax: 01235 250022
28 The Quadrant, The Science Park Barton Lane, Abingdon, OX14 3YS

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