The most popular computation involving employment P-11D benefits in tax exams is always the car benefit.
This arises if a car owned by the employer has private use by the employee.
The first step is to take the list price (not the cost of the car) and deduct any capital contributions by the employee up to a maximum of £5,000.
The second step is to adjust for Co2 emissions. In the tax rates the percentage that corresponds to 55g is 14%. For every extra 5g add 1% up to a maximum of 37%.
The third step is to add 4% for diesel engines except if the car has a RDE2 rating. No not exceed 37%.
Step 4 is to time apportion for non -availability using months.
Finally, Step 5 is to deduct revenue contributions. This is where the employee contributes towards the car running costs such as insurance and maintenance but not fuel.
Wishing you the best of luck in your exams. Get the car benefit perfect.
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