Company car capital contribution calculator
A company car is taxed according to its list price. This can be reduced if you make a capital contribution towards the purchase of the car. This calculator shows you how much tax could be saved.
Company cars
Where you are provided with a car by your employer, a company car benefit will arise. This is calculated by multiplying the list price of the car (when new) by the relevant percentage - which depends on the CO2 emissions figure.
The list price in this calculation can be reduced if you make a capital contribution to the cost of the car. The maximum deduction available for tax purposes is restricted to £5,000.
Calculator
Our calculator works out the annual tax saving for the employee and the NI saving for the employer. You just need to know the capital contribution and the appropriate benefit in kind percentage. In order to work out the tax saving, you also need to know the rate that the employee or director pays tax at.
Related Topics
-
MONTHLY FOCUS: SECONDARY INCOMES
In 2023 it was revealed that HMRC would enjoy new data-sharing information from online selling platforms from 1 January 2024, including eBay, Etsy, etc. This led to media speculation that innocent people selling second-hand items would soon be hearing from a tax inspector. In this monthly focus, we look at the tax consequences of starting a small trade, or taking a second job.
-
Investing in woodlands - what are your options?
Investing in woodlands comes with several tax breaks. To make the most of these should you invest personally or through a company?
-
Deadline for child benefit tax
Changes to the high income child benefit charge mean some couples will pay less tax. Others can also benefit but must take steps to do so. What’s required and when?