Company Cars
The provision of childcare vouchers is exempt from the new OpRA rules.
Transition to Tax-Free Childcare It had been intended that from autumn 2015 no new joiners to a tax advantaged childcare voucher scheme would be permitted and that would allow for the launching of the new childcare support scheme, Tax-Free Childcare (TFC) allowance which offers tax relief on up to £10,000 of qualifying childcare per child up to the age of 12. This is a direct arrangement between the parent and the provider and employers will not be involved unless they wish to provide guidance or add to the online childcare account. This account, held by National Savings, is where parents will deposit cash for the scheme. Tax-free childcare accounts were actually implemented from early 2017 and phased in from the youngest child first. COPYRIGHT © 2021 THE CHARTERED INSTITUTE OF PAYROLL PROFESSIONALS Existing employer provided schemes were due to close to new entrants from April 2018. Following parliamentary debate in March 2018 this was extended to October 2018 and since then employers have not been permitted to admit new employees to old style tax advantaged childcare voucher schemes. It is worth noting that if the employer and the scheme provider allows it there is nothing to stop employees joining a voucher scheme now, however these would not be childcare vouchers carrying any form of tax advantage. COMPANY CARS When an employee is provided with a company car and that car is available for private use, the taxable value of the benefit received from its use was assessed by reference to scale rates published annually by HMRC. There is no requirement for the car to be used for personal purposes, only that it is available although some of HMRCs guidance, “Tax on company cars”, suggests that the employee or members of their family have to “use” the car for personal purposes. Rates were originally determined by the market value purchase price, age and engine capacity of the vehicle.
Company Car Benefit Tables
Scale rates from 1987/1988 to 1993/1994 No printing, copying or reproduction permitted. 1987/ 88 1988/ 89 1989/ 90 1990/ 91 1991/ 92 1992/ 93 £ £ £ £ £ £ 525 700
1993/ 94
£
Vehicle under 4 years of age 19,250 19,250 19,250 19,250 19,250 19,250 19,250
Table A Market value
Up to 1400cc
1,050 1,400 1,700 2,050 2,140 2,310
1401-2000cc
1,400 1,850 2,200 2,650 2,770 2,990
2001cc +
1,100 2,200 2,950 3,550 4,250 4,440 4,800
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