Company Car Averaging
16/11/2009
On Friday 13 November HM Revenue & Customs announced some changes to the company car averaging arrangements for 2010/11. The most significant change is when the calculations need to be performed which is a date between 17 and 31 January, in the previous tax year. This will mean that the 2010/11 calculations must be done on a date of the employers choice in the period 17-31 January 2010.
A further change is that from 2010/11 onwards, the two bands between £23,000 and £49,999 will now be replaced by three bands between these figures. It will also be possible to average two adjacent Bands where employees consistently use a number of cars which fall into two such Bands; however this must be applied to all employees in a location.
Further information can be obtained at http://www.hmrc.gov.uk/cars/averaging.pdf
Should you require any further information, please do not hesitate to contact the tax team on 0161 493 1930