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
-
CT61
-
How to apportion advisory mileage rates for EVs
In September, HMRC introduced a new two-tier advisory mileage rate for employees charging electric vehicles. The rate differs depending on whether the vehicle is charged at home or not. But what’s the correct approach if an employee does both?
-
Can flipping properties create unwelcome tax bill?
You’re planning to purchase a cheap property, refurbish it and eventually sell it on for a hefty profit. You’ve been told that as long as you live in the property, the gain is tax free, is this correct?
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.