Sarah Bradford highlights changes to the taxation of company cars with effect from 6 April 2022.
Although the basic rules for taxing company cars available for use by employees are largely unchanged, each year there are tweaks which will affect the amount charged to tax.
The forthcoming tax year, 2022/23, is no exception, and this article looks at what changes are coming into effect and what steps can be taken to minimise the tax and National Insurance contributions (NICs) cost.
Company cars
Employees with company cars are taxed on the benefit that arises as a result of the car being available for their private use. The amount that is charged to tax depends on the price of the car and any optional accessories, and the car’s carbon dioxide (CO2) emissions.
It is worth noting that the ‘price’ for tax purposes is the list
