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9
Combining qualifying benefits with a properly arranged salary
sacrifice can mean considerable savings for both employer and
employee. If you get the package right, it can be very beneficial
– especially for those with income of more than £100,000 who
will lose their personal allowances. If you fall into this marginal
category, please talk to us to find out how we can help.
Contributing to a pension scheme
Employer contributions to a registered employer pension
scheme or your own personal pension policies are not liable for
tax or NICs.
Please be aware that while your employer can contribute to your
personal pension scheme, these contributions are combined
with your own for the purpose of measuring your total pension
input against the ‘annual allowance’. Further information is
provided in this guide.
Travel and subsistence costs
Site-based employees may be able to claim a deduction for
travel to and from the site at which they are working, plus
subsistence costs when they stay at or near the site.
Employees working away from their normal place of work
can claim a deduction for the cost of travel to and from their
temporary place of work, subject to a maximum period.
Approved business mileage allowances – own vehicle
Vehicle
First 10,000 miles
Thereafter
Car/van
45p
25p
Motorcycle
24p
24p
Bicycle
20p
20p
The company car
The company car continues to be an important part of the
remuneration package for many employees, despite the
increases in the taxable benefit rates over the last few years.
Employees and directors pay tax on the provision of the car
and on the provision of fuel by employers for private mileage.
Employers pay Class 1A NICs at 13.8% on the same amount.
This is payable by the 19 July following the end of the tax year.
The amount on which tax and Class 1A NICs are paid in respect
of a company car depends on a number of factors. Essentially,
the amount charged is calculated by multiplying the list price
of the car, including most accessories, by a percentage. The
percentage is set by reference to the rate at which the car emits
CO
2
– please see the table to the right for the 2018/19 rates.
Pooling your resources
Some employers find it convenient to have one or more cars
that are readily available for business use by a number of
employees. The cars are only available for genuine business
use and are not allocated to any one employee. Such cars are
usually known as pool cars. The definition of a pool car is very
restrictive, but if a car qualifies there is no tax or NIC liability.
CO
2
emissions
(g/km)
Appropriate percentage
Petrol
%
Diesel
%*
0 – 50
13
17
51 – 75
16
20
76 – 94
19
23
95 – 99
20
24
100 – 104
21
25
105 – 109
22
26
110 – 114
23
27
115 – 119
24
28
120 – 124
25
29
125 – 129
26
30
130 – 134
27
31
135 – 139
28
32
140 – 144
29
33
145 – 149
30
34
150 – 154
31
35
155 – 159
32
36
160 – 164
33
37
165 – 169
34
37
170 – 174
35
37
175 – 179
36
37
180 and above
37
* Diesel cars that are registered on or after 1 September 2017 and
meet Euro 6d emission standard are exempt from the 4% supplement.
Car – fuel only advisory rates
Engine capacity
Petrol
Diesel
Gas
Up to 1400cc
11p
9p
7p
1401cc - 1600cc
14p
8p
1601cc to 2000cc
11p
Over 2000cc
22p
13p
13p
Rates from 1 March 2018 and are subject to change. Note the
advisory fuel rates are revised in March, June, September and
December. Please contact us for any updated rates.