Car Benefits and Employee Share

Car Benefits

The tax benefit of company cars is determined by a number of factors, including:

• A percentage of the car’s UK list price including certain accessories (this can be reduced by the employee’s capital contribution subject to maximum deduction of £5,000)
• The car’s fuel type
• The car’s carbon dioxide (CO2) emissions in grams per kilometre
• The employee’s highest rate of income tax
• The age of the car
• Payments made by the employee

Employee Share Schemes

Like car benefits, Employee Share Schemes are a positive way of trying to attract, retain and incentivise employees who you consider to be important to the success of your company.

Some of the schemes available include:

• Enterprise Management Incentives
• Share Incentive Plans
• Approved Company Share Option Plans
• Save As You Earn Share Option Plans
• Unapproved Share Option plans
• Deferred Purchase Plans
• Restricted Shares
• Gifts into Trusts

At Adams & Moore will seek to ascertain your objectives in trying to offer such schemes and provide solutions that are closely aligned to your vision and which comply fully with employment legislation and meet with HMRC’s approval.

Rules and regulations governing these and other benefits change often. Therefore, it is important to make sure that you seek advice from qualified tax specialists so that you select a scheme or benefit that will actually benefit the employee and cost you the least amount of tax.