MKM Car Policy

March 2016 P11D limits

Options

The choice of company car available to you is determined as set out in the table below.
You have an option to contribute up to £25 per month over your benchmark allowance, to increase vehicle specification or choice of vehicle. Any contribution applicable will be deducted from your net salary on a monthly basis and will reduce your benefit-in-kind for income tax purposes.

Car Choice

The choice of available vehicles will be at the Company’s discretion and will be based on business use criteria. Key guidelines are:

Cars only (no pickups)

Exclusion of coupes and convertibles
Minimum 4 doors
Maximum CO2 emissions of 150g/ km
Diesel preference

Leases

Lease periods to be for 4 years unless annual mileage dictates otherwise
Leases to include full vehicle maintenance
Relief vehicles not included

Vehicle selection

Vehicle selection will be based upon job status and a monthly maximum lease cost as follows:

Job status / Monthly lease cost / Grade
Branch Director where branch is making in excess of £400,000 profit per annum / £525 per month
£40000 / A
Branch Director where branch is making less than £400,000 profit per annum / £475 per month
£36000 / B
Department Manager / £425 per month
£31000 / C
Sales Representative / £385 per month
£28000 / D

The monthly maximum lease cost will be reviewed regularly to ensure that the policy provides a good selection of vehicles. In arriving at these amounts the Audi vehicle range has been used as a benchmark based upon a 4 year lease term and 80,000 miles.

Renewal process

Approximately 4 months prior to the current lease expiry, you will receive an email notification to order your new car. You will be provided with access to an online ordering system which allows you to build your vehicle choice and specification within the policy guidelines.

Company Cars and Income Tax (a guide for tax year 2016/17)

Car benefit

Car benefit is based on a percentage of the car’s list price graduated according to the level of the car’s CO2 emissions. As an example (for a 40% tax payer):

Taxable List price:£25,000

Diesel emissions:105 g/km (table % = 21%)

Tax payable on car benefit per annum = £25,000 * 21% *40% = £2,100

**Note: a diesel car with emissions of 130 g/km carries a taxable benefit of 26%**

The lower the CO2, the higher the miles per gallon and the less tax you pay!

General

Vehicles may not be used for driving tuition.
Vehicles may be driven anywhere in the EU, however if driven outside the UK a form VE103 must be obtained from JCT600 and overseas breakdown cover must be arranged.
Tow bars or other extras cannot be fitted without the prior approval of JCT600. Please bear in mind that the cost of any retro-fitted extras will be added to the list price of the car for the purposes of calculating the benefit-in-kind.