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
-
Simpler Recycling rules take effect
New rules on how workplaces must sort their waste and recycling have taken effect from 31 March. What are the key changes to be aware of?
-
New CGT reporting tool
Self-assessment returns aren’t set up for the change in capital gains tax (CGT) rates on the government filing system and will require a manual adjustment for 2024/25 to ensure the correct amount is paid. Why is there a problem and can a new online tool help?
-
MONTHLY FOCUS: THE ENTERPRISE INVESTMENT SCHEME QUALIFYING CONDITIONS
The enterprise investment scheme (EIS) is a generous collection of tax reliefs aimed at encouraging private investment into relatively young companies. In this Focus, we look at the qualifying conditions relating to the investor and the issuing company that must be met in order for a claim for relief to succeed.