| Employee contributes £3,500 to cost of car.
Total price of car when made available £13,500 less
contribution by employee £3,500
Price of car for tax purposes £10,000
|
| Same car as above: air conditioning added after 6 months;
employee pays half cost
plus air conditioning (including fitting etc) £2,000
less contribution by employee £1,000
Therefore price of accessory to add for tax purposes £1,000
Revised price of car for tax purposes £11,000
Payments for the private use of the car, which your employee
is required in a year to make as a condition of the car being
made available for private use, can be deducted from the car
benefit. This is the same rule as applied before April 1994.
|
Same car as above: employee required to pay
£100 a month for the private use of the car. Business
mileage 9,000.
35% of revised price of £11,000 = £3,850
less one third for business mileage £1,283 = £2,567
less payment for private use (12 x £100) £1,200
Car benefit £1,367
|
