Fuel benefit charges to increase

Charges for fuel provided by employers for private journeys have increased in the 2014 Budget, as well as the benefit charge for private ruse of light commercial vehicles.

Employees in receipt of company-funded fuel used privately will see their benefit-in-kind tax bills rise from April 6, 2014. The Chancellor has announced that the fuel benefit charge multiplier for company cars will increase from £21,100 in 2013/14 to £21,700 in 2014/15.

The van fuel benefit charge multiplier will increase from £564 to £581. There has been no word yet on tax for charging electric company vehicles at places of work and using the charge for private use.

The van benefit-in-kind tax charge will increase from £3,000 in 2013/14 to £3,090 in 2014/15. Employees with pay a percentage of this according to their income tax bracket.

Company car tax increases set for 2017 and beyond

Company car tax will increase in two to four percentage point increments for the foreseeable future in measures announced in the 2014 Budget.

Company car tax was clarified 2017-18 and 2018-19, but there was no scrapping of the 5% BIK tax rate for EVs.

The appropriate percentage of list price subject to tax will increase by two percentage points for cars emitting more than 75g/km, to a maximum of 37%, in both 2017-18 and 2018-19.

In 2017-18, there will be a four percentage point differential between the 0-50 and 51-75g/km bands and between the 51-75 and 76-94g/km bands.

In 2018-19 this differential will reduce to three percentage points. The differential will reduce further to two percentage points in 2019-20 in line with the Budget 2013 announcement.