26th January 2012
SME owners and their employees may face a hefty increase in tax and NIC charges when a new emissions scale for company car tax comes into play on the 6th April 2012.
An income tax charge (and Class 1A national insurance liability [currently 13.8%]) will be applied for the private use of a company car on 10% of the car’s list price where a car has CO2 emissions from 76g/km to 99g/km. For emissions of 100 g/km the rate will be 11% rising by 1% per 5g/km band, to a maximum of 35% (emissions of 220 grams per kilometre or above)...
To read more visit: http://wwtaxclub.blogspot.com/2012/01/car-tax-levy-could-hit-sme-owners.html