Hi I am current Studying on personal tex and on company's car allowance in case study car value at £15000 and an emission rating of 119 gkm from Jan untill Apr 4 months
And solution worked out as a 14% x £15000 x 4/12 but i don't under stand how is that 14% been worked out please help me i'will be really appreciate
thought that you had made a typo with the title but you repeated it. It's Tax, not Tex minaxi.
You really need to include which Finance Act your books are for in questions but looking at your figures I would say that you are still on FA12 (really out of date. You should surely have moved to FA14 by now?).
The calculation of the percentage is based on :
<= 75 g/km = 5%
76 to 99 g/km = 10%
100 g/km = 11%
Then add 1% for each full 5 g/km.
Therefore : 119 g/km = 119-100= 19 then 19/5 = 3.8 which is more than 3 but less than 4 so add 3% to the 11% for 100 g/km giving you 14% (ta dah)
For future reference. FA13 base figures would be :
<= 75 g/km = 5%
76 to 94 g/km = 10%
95 g/km = 11%
(So the % would have been 15%)
And FA14 base figures would be :
<= 75 g/km = 5%
76 to 94 g/km = 11%
95 g/km = 12%
(So the % would have been 16%)
HTH,
Shaun.
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
