P11D Car Value

P11D Car Value

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When calculating the P11D value of a new car, we exclude the 1st Registration Fee and VED. However, on this new vehicle, we have 1 year Tyre cover, 3 Years GAP cover and Paint Seal and Protect. I would say to exclude these from the P11D value however I can find nowhere confirming this (and HMRC are taking over 1 hour to answer the phone!)

I would be grateful if you could confirm if you exclude these elements from your P11D car cost computations?

Thanks

Replies (6)

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By neileg
29th May 2015 13:02

Capital/revenue

The tyre cover and GAP insurance are not part of the capital cost of the car so exclude them.

The paint seal and protect is part of the cost of the car. I hope you don't live to regret the paint seal and protect. Modern water based paints need to breathe and sealing the surface can actually damage the paint. (not tax advice I know).

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By philh74a
29th May 2015 16:06

Directors Car

Thanks. I agree with your split. I have noticed that I excluded VED which I shouldn't have done so have added it back in.
 Looking around the internet, many places erroneously state to omit the VED (Car Tax) from the list price which is shocking, as most are major manufacturers sites.

The car was specified for the Director by himself so I also hope doesn't regret the paint protect!

 

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By Anne Robinson
29th May 2015 16:10

Is VED not the new name for Road Fund Licence, not car tax?

Perhaps someone could clarify this for us?

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By philh74a
29th May 2015 16:57

I agree that is confusing as Expenses and Benefits Booklet 408 Section 122 to 124 (12.4) states

''The Price of the car... is the inclusive price published by the manufacturer of the car...It includes standard accessories, any relevant taxes (Value Added Tax, car tax (where appropriate), any customs or excise duty, any tax chargeable as if it were a customs duty) and delivery charges, but excludes the new car registration fee because it is an administration fee, not a tax'.

My assumption is that car tax is VED because it is not always appropriate as some cars such as Prius don't have any.

Clarification would be good.

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By neileg
29th May 2015 16:57

VED is vehicle excise duty and is indeed usually known as road tax or road fund licence. As it relates to the use of the public highway and not the cost of the car it is a revenue expense and not part of the cost of the car.

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By DMGbus
29th May 2015 18:44

Car tax - abolished

There was once a "car tax" that was charged on a brand new car (but not on used cars).

Here's two 1990 examples from an official price list:

Citroen 2CV

Basic Price £ 3,181.00

Car Tax £ 265.08

VAT £ 516.91

Total : £ 3,962.99

Citroen XM

Basic Price £ 11,634.00

Car tax £ 969.50

VAT £ 1,890.53

Total : £ 14,494.03

From the above it will be seen that VAT at 15% was charged on the car + car tax and car tax equated to 8.33% of basic price.

My recollection is that car tax at one time was 10% and got reduced to 5% before being abolished. 

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