Company Cars.

Does your company still own or lease the car you use for private journeys?

You may need to rethink that arrangement in light of the tax charges due to apply in the years ahead.

From 6 April 2015 all company cars will generate a tax charge for the driver and the employer, even electric cars will be taxed on 5% of their list price.

The taxable benefit for other low emission vehicles (51-75g/kg) will leap up from 5% to 9% of the vehicle’s list price. The taxable benefit for all other cars will also increase by two percentage points. The taxable benefit for high emission cars (over 210g/km), will increase from 35% to 37% of the list price.

In 2016/17 all company car drivers will suffer another 2% hike in taxable benefit, except for those which are already taxed at the maximum of 37% of the car’s list price. From 2017/18 the tax shoots up again, as for each extra 5g of CO2 emissions the taxable benefit increases by two percentage points of the list price. “Classic” cars with no recorded CO2 emissions will also be hit with increased taxable benefit charges.

Say you were provided with a new Lexus NX 300 H Sport on 5 April 2014. Its list price is £40,000, and it has a CO2 emissions rating of 121g/kg. If you keep the car for four years you will be taxed 86% of its initial value:

Tax year:

Taxable benefit:

2014/15 – £6,800

2015/16 – £7,600

2016/17 – £8,400

2017/18 – £11,600

Total

£34,400

News / Blog

13th
December

Autumn Budget 2017 – Business Tax Implications

Since the budget statement in November, a number of further details have been released. This week, we have a look…

5th
December

Review of the Budget – 2 Weeks On

It’s been two weeks since the Autumn Budget. Our initial reactions remain the same, but with more information published in…

30th
November

Cloud Accounting – Soon To Be A Necessity For All Businesses

There are a number of implications for Stockport small businesses that came out of last week’s budget. We will be…

22nd
November

Autumn Budget 2017 – Initial Reactions for Small Business

The Autumn budget is out. The Chancellor of the Exchequer, Philip Hammond MP has delivered his Autumn Budget 2017 speech…