New motor car benefit in kind averaging for the motor industry
New arrangements are announced for 2009-10
The new arrangements which will come into effect from April 2009 onwards are being publicised by HMRC so that employers can take note and make the necessary adjustments to their systems and procedures before the changes go live. HMRC intends to review the arrangements with the trade bodies in Autumn 2009 to resolve any minor anomalies.
In relation to the motor industry there are difficulties with the benefit in kind charge in three different situations which are in relation to:
- Test and experimental cars;
- Demonstrator and courtesy cars; and
- Employees with frequent changes of car (“averaging”),
In relation to the last bullet point there will in future be a single national arrangement and local arrangements will no longer be valid.
2 November 2008
