Lower Emissions Company Cars

If you have the option of a company car, or are about to change your current company car, think about the CO2 emissions of any vehicle you are considering.

Choosing a car with lower emissions can save considerably on the amount of the taxable benefit in kind, and consequently decrease your tax liability.

The taxable benefit is calculated as a percentage of the list price of the car, and the higher the emissions, the higher the percentage applied.

Please see here for a full list of current and proposed rates.

Advertisements

Company Cars: Tax Increase!

From 6th April 2015, all company cars are liable to benefit in kind charges, including electric cars.

Zero-emission cars now incur a benefit of 5% of their list price, whilst low emission cars (those between 51-75g/km) give rise to a benefit of 9%, an increase of 4% from last year.

All other company cars have seen an increase in the taxable benefit of up to 2%, with the maximum rate being 37% of the list price.

Although this maximum rate is set to stay at 37%, more cars will be brought into that band over the next four years – currently it applies to cars with emissions of 210g/km and above, but by 2019-20 it will include cars with emissions of 165g/km and above.