For one month from the date of change, employers may use either the previous or new current rates, as they choose. Employers may therefore make or require supplementary payments if they so wish but are under no obligation to do either.
The new rates are below (previous rate in brackets where there is a change):
Engine size
Petrol
LPG
1400cc or less
10p
7p
1401cc to 2000cc
12p (11p)
8p
Over 2000cc
18p (17p)
12p
Engine size
Diesel
1600cc or less
9p (8p)
1601cc to 2000cc
11p (10p)
Over 2000cc
12p
Hybrid cars are treated as either petrol or diesel cars for this purpose.
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Company car appropriate percentages for 2021-22 12 March 2021
The HMRC Software Developers Support Team have released details of the car appropriate percentages to be used for the tax year 2021-2022.
For cars registered on or after 1 January 1998 with an approved CO2 emissions figure, the advice is to refer to the ‘Company Car Tax’ section within the Policy paper: Annex A: Rates and Allowances.
The below table relates to cars registered on or after 1 January 1998 without an approved CO2 emissions figure:
Engine capacity (cc)
Appropriate percentage (A and F)
Appropriate percentage (D)
1400 or less 1401 to 2000
24% 35% 37% 37%
28% 37% 37% 37%
Over 2000
All rotary engines
For all cars registered before 1 January 1998:
Engine capacity (cc)
Appropriate percentage
1400 or less 1401 to 2000
24% 35% 37% 37%
Over 2000
All rotary engines
It has also been confirmed that capital contributions made by the employee towards the cost of the car or the accessories remain at the maximum of £5,000
Details within the notification also confirm that a car classic car is one which is at least 15 years old on 5 April 2022 and has a market value of at least £15,000
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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