taxation (taxable income and national insurance)

timer Asked: Jul 31st, 2014
account_balance_wallet $5

Question Description


I have an issue to understand how the car benefit formula has been worked out, and why the van benefit unavailibility is 9 months out of 12 and not just 3. For the National insurance question, I do not understand to what the formulas refer to; 

Tutor Answer

School: UCLA

I understand your question but every country have their own taxation rules i have learnt UK tax in my studies i can guide you according to UK tax rules.

Car benefit is calculated by =          List Price  x  % Carbon dioxide emission rate

  • List price is the official price of the car ignoring any discount available on purchase.
  • List price includes all cost of optional accessory which is fitted in the car when it is first provided to the employee.
Carbon dioxide emission is available and calculated according to this table but it change over time period:

CO2 emisson per Km                                   Petrol Car %                      Diesel Car %

1----75 grams or less                                               5                                             8

76----------99  grams                                               10                                           13

100 grams                                                               11                                           14

Each complete additional 5 grams above 100      (An additional 1% is added to the 11% or 14% upto a                                                                                          maximum of 35 %)

Benefits for Van is 3000 pounds when it is made available for private use. And there is no benefits for heavy commercial vehicles. And this benefit is time apportion if van is available for 9 months so its not calculated for further 3 months.

For national insurance question give me your question i will solve it according to the formulas which is best fit.

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awesome work thanks

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