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
-
Extracting property from your company
As your retirement date is fast approaching, you’re looking to sell your company, but you want to keep the property it owns. A friend said you can buy the property from the company, but what are the tax consequences and is there a better option?
-
New HMRC guidance on winter fuel payments
HMRC has released new guidance on the recovery of winter fuel payments. What do you need to know?
-
Festive tax breaks for remote workers
You’re familiar with the tax break for Christmas parties but you now have a few remote workers, and the company will need to reimburse their travel and accommodation costs if they attend an event. Which costs count towards the tax-free limit and how can you manage any overspend?
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.