There are a number of changes that company car drivers should be aware of:
- There will no longer be a 0% rate for zero emission cars. Instead, they will trigger a rate of 5% from April 2015
- For cars with emissions between 51 and 75g/km, they will see a rise in their appropriate percentage from 5% to 9%
- There will be a minimum of a 2% increase to the appropriate percentage for cars with CO2 emissions exceeding 75g/km
- There will be an increase in the cap for the maximum appropriate percentage from 35% to 37%
Looking ahead, from 6 April 2016 there will no longer be a 3% increase in the appropriate percentage for diesel cars.
From the type of vehicle, to ownership, to who pays for the running costs; there is lots to consider when shopping around for your next company car. To avoid any mishaps, speak with your local TaxAssist Accountant to make sure you make the right choice and are fully aware of the tax implications.
By Jo Nockels
Disclaimer: The information provided is based on current guidance (at date of publication) from HMRC and may be subject to change. Any advice shared here is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this information, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.