Aug

04

2010

New CCT category 'could benefit umbrella company users'

Category:

Posted by Sarah Putt

Umbrella company users who rely on their vehicles for work may be interested to know that a new category has been added for company car taxes (CCT).

HM Revenue and Customs' benefits and expenses sub-group meeting has discussed the introduction of a five per cent rate for ultra-low-emission cars.

This lower rate would apply to those vehicles with engine emissions of 75g/km and below, a type of vehicle which is expected to be available shortly.

In addition, those umbrella company users with zero-emissions vehicles will be taxed at a zero per cent rate until 2015.

The lower threshold is also due to be reduced by five g/km to 130g/km following an announcement in last year's Budget.

Bob Jones, founder of internet-taxation.co.uk, recently told ContractorUK.com that it is important umbrella company users understand the three different types of travel expenses and how these are treated differently in the UK tax system.ADNFCR-2808-ID-19919450-ADNFCR