PART 2: TAX
Car fuel benefit scale charge from 6th April 2005
Annual multiplier £
Annual multiplier £
Year
Year
2005/06 COPYRIGHT © 2021 THE CHARTERED INSTITUTE OF PAYROLL PROFESSIONALS 14,400 2017/18 22,600 2010/11 18,800 2018/19 23,400 2013/14 20,200 2019/20 24,100 2014/15 21,700 2020/21 24,500 2015/16 22,100 2021/22 24,600 2016/17 22,200 Where the employee opts out of free fuel during a tax year, the payment due will be in proportion to that part of the year for which they received free fuel. In addition, the amount of Class 1A NICs will similarly be reduced. Opting back into free fuel later in the year will result in a full year’s tax and Class 1A NICs becoming due. Free fuel needs to be fully reimbursed by the employee to the employer in order for no fuel benefit charge to be due. The new OpRA rules will apply to free fuel in the same manner as they do for the car itself. If the cash foregone, agreed to in order to obtain the car and fuel, is in excess of the combined car and fuel charge to tax then the charge to tax will be the cash foregone. CAR PARKING AT WORKPLACE There is no tax liability in respect of car parking places provided at, or near to an employee’s place of work. Where payment for such places is handled via salary sacrifice this is one of the benefits that an employee can opt-in and out of on a regular basis without the sacrifice becoming ineffective. No pri ting, copying or reproduction permitted. Since 6th April 2017 car parking at or near the place of work, however provided, has lost its tax exemption if provided under a remuneration arrangement caught by the new OpRA rules. CHARITABLE GIVING Tax relief for gifts to charities in the United Kingdom can be achieved in any of three ways: • Deed of Covenant - payment of a regular amount for a minimum period of three years. The charity claims the tax paid after the close of the tax year by submitting a return to the HMRC. The tax refund is remitted directly to the charity. The sum paid by the donor is the net value of the donation. This is the value after deduction of tax at the rate paid by the donor. • Gift Aid - introduced October 1990 - making a single cash gift of a minimum net amount with tax relief. See https://www.gov.uk/claim-gift-aid.
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