News in detail
<< show all articles
Offering a cash Allowance? – It could be costing you and your drivers money
It wasn't many years ago the Government was taxing drivers out of the company car.
But with the Chancellor improving the tax incentives to drive low emission vehicles yet again in his Budget, and with manufacturers producing extremely attractive low emission cars, many people do not realise how cost-effective the company vehicle has become.
It was back in April 2002 that company car tax rates became based on CO2 emissions. With a vehicle's CO2 emission level determining the percentage of the on the road cost that can be taxed, vehicles with lower CO2 emissions incur a lower tax liability.
At that time, there were so few good low emission vehicles around that it had little impact. However, now there is extensive choice of extremely appealing low emission cars.
“It’s impossible for every business to remain on top of all tax changes and what the vehicle manufacturers are doing,” said Phil Elms, Sandicliffe Motor Contracts’ National Sales Manager.
“Which is why we frequently encounter companies who have not appreciated how cost effective it has become, once again, for both the business and the driver to have company cars.”
This means that not only can drivers choose some very aspirational cars, such as Audi, BMW, and VW, which due to their low emissions attract very low BIK payments, but cars with CO2 emissions of less than 110g/km qualify for first year writing down allowances of 100% which is extremely beneficial from a company taxation perspective.
To look at the most cost-effective option for your business and its drivers, please call Phil Elms on 01159 466 466 or email phil.elms@motorcontracts.co.uk
<< show all articles
Offering a cash Allowance? – It could be costing you and your drivers money
It wasn't many years ago the Government was taxing drivers out of the company car.
But with the Chancellor improving the tax incentives to drive low emission vehicles yet again in his Budget, and with manufacturers producing extremely attractive low emission cars, many people do not realise how cost-effective the company vehicle has become.
It was back in April 2002 that company car tax rates became based on CO2 emissions. With a vehicle's CO2 emission level determining the percentage of the on the road cost that can be taxed, vehicles with lower CO2 emissions incur a lower tax liability.
At that time, there were so few good low emission vehicles around that it had little impact. However, now there is extensive choice of extremely appealing low emission cars.
“It’s impossible for every business to remain on top of all tax changes and what the vehicle manufacturers are doing,” said Phil Elms, Sandicliffe Motor Contracts’ National Sales Manager.
“Which is why we frequently encounter companies who have not appreciated how cost effective it has become, once again, for both the business and the driver to have company cars.”
This means that not only can drivers choose some very aspirational cars, such as Audi, BMW, and VW, which due to their low emissions attract very low BIK payments, but cars with CO2 emissions of less than 110g/km qualify for first year writing down allowances of 100% which is extremely beneficial from a company taxation perspective.
To look at the most cost-effective option for your business and its drivers, please call Phil Elms on 01159 466 466 or email phil.elms@motorcontracts.co.uk