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            <div class="dfb_head gen_head">&nbsp;<div class="dfb_head_title"><h2 class="dfb_color">Documents for Business</h2>In excess of 1,000 customisable documents covering every conceivable business issue.</div></div>            	<div class="grid_8 alpha"><div class="doc_box shadow borderSolid"><h2 class="doc_header borderBottom dfb_color dfb_border">Introduction to this document</h2><div><h1 class="Introtitle"><span style="letter-spacing:normal">C</span><span style="letter-spacing:normal">ompany car running cost contribution agreement</span></h1><p class="Introintroduction"><span>If an employee or director </span><span>is required </span><span>to </span><span>a</span><span>nd </span><span>actually </span><span>pay </span><span>their</span><span> employer </span><span>towards the </span><span>running costs of </span><span>th</span><span>eir</span><span> company car</span><span> </span><span>it </span><span>r</span><span>educe</span><span>s</span><span> the taxable benefit </span><span>in kind</span><span>.</span><span> To ensure </span><span>the</span><span> contri</span><span>bution is effect</span><span>ive</span><span> </span><span>t</span><span>he employer and employee should formalise the</span><span> arrangement in an agreem</span><span>e</span><span>nt.</span><span> </span></p><p class="Introsubtitle"><span>qualifying </span><span>contirbutions</span></p><p class="Introbody"><span>C</span><span>ontributions</span><span> by an employee</span><span> to</span><span>w</span><span>ard</span><span>s the</span><span> </span><span>running costs</span><span> </span><span>incurred by their employer reduce the amount of taxable car </span><span>benefit pound-for</span><span>-</span><span>pound</span><span>. </span><span>The reduction also applies to the </span><span>amount chargeable </span><span>to </span><span>Class 1A NI.</span><span> </span><span>To be effective </span><span>t</span><span>he employee must be required </span><span>by their employer </span><span>to make </span><span>the</span><span> contribution</span><span>.</span><span> </span><span>Use our </span><span style="font-weight:bold">Co</span><span style="font-weight:bold">mpan</span><span style="font-weight:bold">y</span><span style="font-weight:bold"> </span><span style="font-weight:bold">C</span><span style="font-weight:bold">ar </span><span style="font-weight:bold">R</span><span style="font-weight:bold">un</span><span style="font-weight:bold">ning </span><span style="font-weight:bold">C</span><span style="font-weight:bold">ost </span><span style="font-weight:bold">C</span><span style="font-weight:bold">o</span><span style="font-weight:bold">ntribution </span><span style="font-weight:bold">A</span><span style="font-weight:bold">greement</span><span> to ensure </span><span>the agreement </span><span>is correct</span><span>ly worded</span><span>.</span></p><p class="Introsubtitle"><span>timing</span></p><p style="t"><span style="font-family:Helvetica; letter-spacing:-0.15pt">For a contribution to be effective in reducing car benefit for a tax it it mus</span><span style="font-family:Helvetica; letter-spacing:-0.15pt">t be paid </span><span style="font-family:Helvetica; letter-spacing:-0.15pt">no later than 5 July following the end of that year</span><span style="font-family:Helvetica; letter-spacing:-0.15pt">.</span></p><p style="t"><span style="font-family:Helvetica; letter-spacing:-0.15pt">&#xa0;</span></p><p style="t"><span style="font-family:Helvetica; letter-spacing:-0.15pt">&#xa0;</span></p><p><span>&#xa0;</span></p></div></div></div><div class="grid_4 omega"><div class="doc_box roundBig borderSolid metadata"><h3 class="doc_header borderBottom dfb_color dfb_border">Document</h3><div class="borderSolid shadow floatLeft"><img src="https://d3sxy2z0ijo7zx.cloudfront.net/alf/uk/thumbs/585/24585.png" alt="Company car running costs contribution agreement" /></div><div class="clear"></div><div class="centerText"><a 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