Higher Diesel Supplement
The appropriate percentage used to work out the taxable benefit in respect of a diesel company car is subject to a diesel supplement. From 6 April 2018, the diesel supplement is increased from 3% to 4%. The supplement will apply to all diesel cars registered on or after 1 January 1998 which do not meet the Real Driving Emissions Step 2 (RDE2) standard. Following the increase in the supplement, as now, the maximum charge remains at 37%.
The fuel benefit multiplier for 2018/19 is increased to £23,400.
The van benefit charge which applies to vans which are available for the private use of an employee (and where the private use is not limited to home to work travel) is set at £3,350 for 2018/19. The charge for a zero emission van is set at 40% of this figure for 2018/19, equal to £1,340. The van fuel benefit charge is set at £633 for 2018/19.
Electric Cars and Charging Points
No benefit in kind arises where an employee with an electric car uses his or her employer’s electricity to charge their car.
From 2020/21 new emissions bands are to be introduced for ultra-low emission vehicles. From that date, the charge for zero emission cars will be set at 2%. For cars with CO2 emissions in the 1 to 50g/km band, the appropriate percentage will depend on the electric range of the car, ranging from 2% for cars with an electric range of 130 miles or more to 14% for cars with an electric range of less than 30 miles.
Please contact us on 01275 852 255 for personal advice on your own affairs or should you wish to discuss any of the above in more detail.