HMRC To Tax Company Car Add-Ons

Motor Finance, the journal for the car finance industry, has picked up on a Government change of mind regarding the taxing of Company Car add-ons.  In an article published on-line on the 9th November they mention the tax benefits for salary sacrifice schemes known as Optional Remuneration Arrangements (OpRA) which were introduced in April 2017 where only the company car itself would be taxable. They go on to say that earlier this year this position was changed and other elements such as tyres, roadside recovery and maintenance were highlighted to be recognised as benefit in kind. The implication of this is that employees will pay more tax and employers will pay more in Class 1a National Insurance. They go on to say these changes have been added to the Finance Bill currently going through Parliament. We understand these changes are to be introduced in the tax year 2019-20.


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