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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4879
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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Sam, I have a car tax question? I run a 5 series BMW M Sport diesel car and my

Resolved Question:

Hello Sam,
I have a car tax question?
I run a 5 series BMW M Sport diesel car and my now £11,000 tax limit is reduced by £8,956 pa meaning I now pay tax from £1,500 is this correct and how a car should be taxed etc...?
Submitted: 11 months ago.
Category: Tax
Expert:  bigduckontax replied 11 months ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. Can you please be a little more exact as to your vehicle's model?
Customer: replied 11 months ago.
The value of the car was just less than £37,000 at new, it's a 63' plate so three years old this September from registration.It's a company car ran on a 25,000 miles/pa contract at £510.00 per month to the business. I don't really claim any business miles as the majority of the mileage is to and from work.The £8956.00 is what HRMC have said is this years deduction from the £11,000 allowance before tax meaning I pay 20 and 40% tax sooner than I of course should which appears very high? And similar to a colleague with a similar car in the same position and asking the same questions/concern? It just seems as if we are paying £700-£750 with this reduction per month for the are on top of what the company pay? Is this the right way it works?
Expert:  bigduckontax replied 11 months ago.
You are being provided with a car which is essentially used for residence to place of duty travel. An employee can only have one place of business so any travel outside that place is business travel. This is all private mileage, but with out full details of the vehicle involved I cannot calculate the accuracy of your benefit.
Customer: replied 11 months ago.
can you let me know what further details you require on the car?
BMW 5 series M Sport diesel
Value at new: £37,000
25,000 mls/pa
CO2: 119
Expert:  bigduckontax replied 11 months ago.
Unfortunately the information sites give a plethora of different types for your car. Unless you can be more specific I cannot assist you.
Customer: replied 11 months ago.
This is all the detail on my car:BMW 520d [190] M Sport 4dr Step AutoEmissions: CO2 emissions 119 g/km BMW 5 SERIES CO2 EmissionsEngine and Drive Train: Camshaft type DOHC
Engine displacement 1995 cc BMW 5 SERIES Engine Size
Compression ratio 16.5:1 BMW 5 SERIES Compression Ratio
Cylinder layout IN-LINE
Number of cylinders / valves 4 / 16
Cylinders - bore 84 mm
Cylinders - stroke 90 mm
Engine code B47D20O0 BMW 5 SERIES Engine Codes
Fuel delivery COMMON RAIL
Number of gears 8 SPEED BMW 5 SERIES Top Gear
Transmission type SEMI-AUTO *****Combined 62.8 mpg
Extra-urban cycle 68.9 mpg BMW 5 SERIES Fuel Economy
Urban cycle 53.3 mpgGeneralBadge Engine CC 2.0
Badge Power 190
Insurance group (1-50) 36D BMW 5 SERIES Insurance Group
Anti-corrosion guarantee 6 years
Paintwork guarantee 3 years
Service interval frequency 24 months
Service interval mileage 36000 BMW 5 SERIES Service Intervals
Manufacturer's warranty 999999 miles / 3 years BMW 5 SERIES Warranty Mileage
Vehicle Homologation Class M1Performance0 to 62 mph 7.7 secs
Max power 190 PS @ 4000 rpm BMW 5 SERIES bhp
Max torque 400 Nm @ 1750 rpm BMW 5 SERIES Torque in Nm
Top speed 145 mphTyresTyre size - front 245/45 R18 BMW 5 SERIES Front Tyres Size
Tyre size - rear 275/40 R18 BMW 5 SERIES Rear Tyre Size
Tyre size - spare RUN FLAT TYRES BMW 5 SERIES Spare Wheel
Wheel style M DOUBLE-SPOKE
Wheel type 18" ALLOY BMW 5 SERIES Wheel SizeVehicle DimensionsHeight 1475 mm BMW 5 SERIES Height
Length 4907 mm BMW 5 SERIES Length
Wheelbase 2968 BMW 5 SERIES Wheelbase
Width 1860 mm
Width - including mirrors 2102 mm BMW 5 SERIES Width Including MirrorsWeight and CapacitiesFuel tank capacity 70 litres BMW 5 SERIES Fuel Tank Capacity
Gross vehicle weight 2240 kg BMW 5 SERIES Gross Vehicle Weight
Luggage capacity - seats up 520 litres
Max loading weight 610 kg
Max roof load 100 kg
Max towing weight - braked 2000 kg BMW 5 SERIES Towing Weight Limit
Max towing weight - unbraked 750 kg BMW 5 SERIES Towing Capacity
Unladen weight 1630 kg BMW 5 SERIES Kerb Weight
Number of seats 5 BMW 5 SERIES Number of Seats
Turning circle 12 metres
Expert:  bigduckontax replied 11 months ago.
i am no car expert, I will opt out, sorry.
Customer: replied 11 months ago.
As you asked me for all of the details I had expected you to provide and answer from these? and not then state you had no expertise in this field? - Strange? I hope this is a not a bogus site and I will be furnished with a worthy response to my question and payment from a individual in this field very shortly.Very disappointed to date
Expert:  taxadvisor.uk replied 11 months ago.
Thank you for your question..You car benefit charge is based on CO2 emissions.Based on what you have stated as the price (£37k) the benefit would be equivalent to £8,510.Look at this link to calculate car benefit and fuel benefithttp://cccfcalculator.hmrc.gov.uk/CCF0.aspx The CO2 emmisions percentage applicable in your case is115-119 g/km is (20% + 3%) = 23%For the benefit to be £8,956 the cost price when new should be in the region of £38,940.More on CO2 percentages can be found herehttp://www.rossmartin.co.uk/employers/benefits-in-kind/242-c02-emissions-appropriate-percentages Please use the calculator to satisfy your self and if you make it £8,510 then I suggest you ask HMRC to provide details of their calculations. I hope this is helpful and answers your question.If you have any other questions, please ask mebefore you rate my service – I’ll be happy to respond.Please rate my service only if my answer is acceptable.
Expert:  bigduckontax replied 11 months ago.
I see my colleague has picked up your question and responded. This post is merely to clear my question list.
Customer: replied 11 months ago.
Thank you for the response(s)I will try the two links out later, but can I again clarify the £8,510 or the £8,956 (by HMRC to me) is to be taken each year from the £11,000 allowance and this is how the calculation is made on tax thereby meaning tax is payable from a much lower level (£1,500-£2,000) Should there then be an indication of the car/tax etc... within my monthly salary? or just in the tax code I then have?
Expert:  bigduckontax replied 11 months ago.
I have opted out, this post to clear my question list.
Expert:  taxadvisor.uk replied 11 months ago.
Thank you for your reply. The tax payable on benefit in kind would not be shown within your monthly salary as it is neither salary nor a car allowance. The benefit amount is taken off the personal allowance and reflected on tax code meaning you start to pay tax from a much lower allowance. Your company should issue you with a P11d at the end of each tax year and report car benefit on it. You should also declare the benefits as shown on P11d on your SA tax return.The benefit figure will be taken off your personal allowances each year to enable the tax man collect correct tax on each payroll run. This will be reflected on your tax code as appropriate. I hope this is helpful and answers your question.I will appreciate if you would kindly rate/accept the service I provided to ensure I get creditedfor it by Just Answer.
Expert:  taxadvisor.uk replied 11 months ago.
Hi there, checking to see if you require further clarification
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4879
Experience: FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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