Motus’ Post

Can you reclaim NIC on car allowances paid to your employees? Here's what you need to know:

Do you pay car allowances?? Do you receive a car allowance? Car allowance is a payment made by employers to employees to cover the cost of using / insuring / maintaining their personal vehicle for work related purposes. It's an increase in salary and is taxable too. Putting aside the tax payable and money lost by BOTH employers and employees to pay car allowances to staff, car allowance also brings about a different issue - GREY FLEET!! What's that you ask!? Grey fleet consists of employees personal vehicles which are REGULARLY used for business purposes. There are risks with this - SAFETY - limited company control over condition and maintenance of vehicles LEGAL & COMPLIANCE - appropriate insurance, tax, MOT, relevant, clean driving licences ENVIRONMENTAL - emmissions standards and fuel efficiency COSTS - fuel and administration costs for expenses claims Luckily, I have a solution to all the above AND a way to mitigate tax costs!! #greyfleet #fleet #employeebenefits #employers #emmissions #environmental

CAN YOU COVER YOUR VEHICLE COSTS FOR £200 PER MONTH? I'm noticing that recruitment agencies and employers are STILL offering employees out dated company car allowances - often these are for higher rate taxpayer positions too In the current financial climate, a £5,000 gross annual car allowance just doesn't cut it anymore - there is no value! For a 40% taxpayer this nets down to around £200 p/m after the effect of tax and National Insurance to cover - Vehicle finance costs Road tax Tyres Maintenance ...and the ever increasing cost of car insurance 😒 Thankfully, there is a better way to address this and save your Company VAT and fuel costs PLUS Reduce your employees tax liability and car costs So, if you still pay car allowances, or indeed receive one, I'm only a phone call away! Not sure where to start, or if this right for you? Don't know anything about cars, or which one is best for you? Not keen on EVs? Want to provide an actual benefit to your employees? REAL LIFE CONTEXT RIGHT HERE 👇 You'd need £1,000 p/m car allowance to get into a fully maintained Kia Sportage currently 🤯 10,000 miles annually 1 + 35 months Perhaps it's time to give me a shout to find a better way forward! 🙏 07714 284263 hanna.ml@vehicleconsulting.com #recruitment #employer #employee #financedirector #ceo #tax #carallowance #employeebenefits #salarysacrifice #taxincentives #vat

Car Allowances Are Not Tax-Efficient

Curious about the buzz around FAVR car allowances? 🤔 Dive into this insightful article demystifying FAVR's intricacies and uncover how it can drive efficiency and satisfaction across your organization! 🌟

🚗 When is a pool car not a pool car? Generally, where an employee has access to a car owned by an employer, a company car benefit-in-kind arises. However, if the car is classed as a ‘pool’ car, there is no taxable benefit however there are strict HMRC conditions… A company car is a well-established perk of employment, even with the restrictions on salary sacrifice arrangements and higher charges for non-electric vehicles, it remains a popular option. However, there is an exemption for cars that qualify as ‘pool cars’, on the grounds that no individual has exclusive use of the vehicle. The use of these vehicles is not a benefit-in-kind and does not need to be reported on the P11D form. Generally speaking, a pool car is a car that is available to a pool of individuals. But to qualify for the tax exemption, there are strict criteria that must be met!! ⛔ Pool cars are a hotspot for HMRC to challenge – perhaps unsurprisingly, as the benefit-in-kind charge can be applied to as much as 37% of the list price annually so if you need clarification then do not hesitate to contact us on 01924 682113 or email enquiries@amindoffiguresltd.co.uk #poolcar #BenefitInKind #P11D #Employeeperks #taxsavings

Updated for 2024: Our Complete Guide to FAVR Car Allowances. Get all the info you need on relevant market factors, benefits and IRS guidelines. https://hubs.li/Q02pxm4M0

🚗 Compulsory salary sacrifice availability suggested as EV market boost 🚗 Mandating salary sacrifice car provision for some organisations could be a way of democratising EV roll-out in the UK. That’s according to James Court, CEO of EVA England, who said that action was needed to widen the roll-out of the vehicles, which were currently tending to go to more affluent drivers. Court addressed a Westminster Forum Projects seminar on the next steps for EV deployment and charging infrastructure, which also heard from Lorna McAtear on the importance of favourable EV company car tax rates, and Ian Plummer on how falling used EV prices might be a problem in the long term. Read more online: https://lnkd.in/efBqsJ5J 🔔 Click on our follow button to see regular car and fleet industry news and insights 🔔 #BusinessCar #evs #electricvehicles #salarysacrifice #fleet #companycar #usedcars #usedevs

Spotlight on… Reclaiming NICs on company car allowances Some employers have traditionally provided employees with ‘round sum motoring allowances’ and then either expected the individual to provide their own car for business purposes and pay all business mileage costs directly, or have only provided for business mileage expense claims on a restricted basis with the assumption that the remaining costs are covered by round sum payment(s) which the individuals have received. While this approach has always been practical from an Income Tax perspective, the NIC position has been unclear. After a recent Upper Tribunal Ruling however, the position now is that the advance payment of motoring expenses can be outside the scope of NIC in certain circumstances. In this edition of Spotlight On, Robert Salter looks at employer eligibility around reclaiming National Insurance Contributions (NICs) on company car allowance and what you now need to know: https://hubs.la/Q02bmdmk0 #blickrothenberg | #spotlighton I #NIC I #CompanyCar I #NationalInsurance

Raise your hand if employee car perks have you scratching your head 🙋♂️ While letting staff drive yours sounds nice, the tax man sees it differently. Before the ATO comes knocking, let us save you some hassle. Any private use of company cars or utes has to be reported and tax paid - it's called a "fringe benefit". Passenger vehicles designed to carry fewer than 9 passengers (including the driver), including a 4-wheel-drive vehicle but not a motorbike usually applies Work vehicles get more flexibility if trips stay job-related. A little planning goes a long way. Don't get audited and learn the hard way! Save yourself future stress by getting car fringe benefits right from the start. #taxpreparation #taxdeductions #taxtips #smallbusinesstips #itp