Fleet4U - Contact Hire and Leasing Northern Ireland
Our Portadown and Newry based team specialise in Personal and Business Contract Hire
Company cars are one of the most popular employee benefits. All together, hundreds of directors and employees in Northern Ireland drive company cars. Of these, many receive free fuel for private use.
Both employers and employees should consider the tax implications of company cars before making decisions. Companies are now encouraged to run 'greener' cars. A car's CO2 emission levels determine the tax paid for both new and existing vehicles, though older vehicles (registered before 1998) are still taxed on engine size. To make a calculation on a considered or existing vehicle visit the company car and car fuel benefit calculator.
You will pay tax on your company vehicle if you use it both for work & privately. HMRC will require you to pay tax usually through your salary PAYE. The amount of tax you pay is depending on the value, type and fuel of the vehicle. You should keep HMRC up to date on your company car details.
Employees are taxed based on the P11d value of the vehicle and their subsequent income tax banding. Use of fuel for in your company car can also affect the the tax you pay. For more information on company car tax in Northern Ireland simply contact your Fleet4U finance specialist.