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Company cars and fuel (Table C) There are no changes to the taxation of company cars and fuel for 2009/10. The charge is based on a percentage of the list price for the car and the same percentage of a fixed figure of £16,900 for the fuel. The percentage is linked to the CO2 emissions rating of the car. It had already been announced that there will be increases to tax charges from April 2010 because the thresholds for CO2 emissions will be lowered by 5g/km: for most people this will add 1% to the percentage that is applied to the list price of the car and to the standard figure for fuel to give the taxable benefits in kind. A further 5g/km will be taken off the thresholds for 2011/12, leading to a further 1% addition to most people's percentages. For example, a petrol-engined car with a rating of 150g/km will have a percentage of 18% in 2009/10, 19% in 2010/11 and 20% in 2011/12. The upper limit on list prices, currently £80,000, will also be removed in 2011/12, so drivers of very expensive cars will see a substantial increase in their tax charges. Employee accommodation Where an employer provides residential accommodation for an employee, the taxable benefit in kind is calculated according to the rent paid by the employer or the capital amount paid for the property. An avoidance scheme has used the payment of a premium for a short lease to minimise both the rent and the capital value. New leases taken out from 22 April 2009 will be subject to tax on the employee and NIC on the employer as if the premium is a payment of rent which will be spread for tax purposes over the whole period of occupation. |