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Rivervale’s Top Cars to Keep your Company Car Tax Payments Low

Rivervale’s Top Cars to Keep your Company Car Tax Payments Low

When choosing a company car working out how much you will pay in company car tax may be a big consideration. Yet working out that all important figure maybe a mystery to you! The most important 2 factors in calculating Company Car Tax are the value of the vehicle and the CO2 emissions. The higher each of these factors are - more you will pay!

The table below shows you what percentage of benefit in kind you will pay (2016-2017) based on the Co2 emissions of your car and you need this percentage to work out how much Company Car Tax you will pay.

Benefit in Kind % Co2 (g/km) Benefit in Kind % Co2 (g/km)
    22 125-129
5   23 130-134
7 0-50 24 135-139
9   25 140-144
10   26 145-149
11 51-75 27 150-154
12   28 155-159
13   29 160-164
14   30 165-169
15 76-94 31 170-174
16 95-99 32 175-179
17 100-104 33 180-184
18 105-109 34 185-189
19 110-114 35 190-194
20 115-119 36 195-199
21 120-124 37 200 or more

For example if you have a car worth £20,000 which emits 180g/km Co2 and are on the 20% personal tax rate, you would calculate your company car tax in the following way

Value of Car

£20,000

X

Benefit in Kind

33%

X

Personal Tax Rate

20%

÷

12 months of the year

=

Company Car Tax payment of

£110 per month

However, if you have a £20,000 vehicle that only emits 95g k/m of Co2 the maths works out like this;

Value of Car

£20,000

X

Benefit in Kind

16%

X

Personal Tax Rate

20%

÷ 12 months of the year =

Company Car Tax payment of

£53.34 per month

Which cars are considered to have low emissions is changing on a yearly basis, the predicted changes for the next 5 years for the lowest emissions can be seen in the chart below.

Co2 emissions (g/km)
Benefit in Kind % 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021
0          
5          
7 0-50        
9   0-50      
10          
11 51-75        
12          
13   51-75 0-50    
14          
15 76-94        
16 95   51-75 0-50  
17 100 76-94      
18 105 95      
19 110 100 76-94 51-75 0-50
20 115 105 95    
21 120 110 100    
22 125 115 105 76-95 51-75
23 130 120 110 95  
24 135 125 115 100  
25 140 130 120 105 76-94

If you have a vehicle which emits 100g/km of Co2 you will currently be paying 15% of the vehicles value in company car tax. But in 2018 this is likely to jump to 21%. This change is occurring as vehicles are becoming more and more efficient. The Government wants to encourage the use of ultra-low emissions vehicles, so the cars with the lowest Co2 emissions will always have the lowest associated costs. To keep company car tax payments low and beat the Co2 band changes every year you would be wise to pick to the lowest emissions vehicle available to you.

For most people the thought of an electric car is very daunting. Range anxiety is still a major problem, no one wants to run out of electricity on their way to a meeting! With a hybrid vehicle you can have the security of a combustion engine and the low emissions benefits of an electric motor. When compared to a similar non-hybrid model, the savings that can be made are clear to see!

Here are the money saving company cars Rivervale Car Leasing recommends ...

BMW 3 Series Saloon330e SE 4dr Step Auto

 

0-62 mph in 6.1 seconds

148.7 mpg

Co2 Emissions 44g/km

Company car tax at 20% Personal tax rate =

£38.68 per month

 

Non-Hybrid comparison 3 Series 320 EfficientDynamics Plus 4dr StepAuto

0-62 mph in 7.8 seconds, 74.3 mpg, Co2 emissions 99g/km, Company car tax at 20% personal tax rate = £89.08 per month

Mercedes-Benz C Class Saloon C350e Sport 4dr Auto

 

0-62 mph in 5.9 seconds

134.5 mpg

Co2 emissions 48

Company car tax at 20% personal tax rate =

£44.60 per month

 

Non-Hybrid Comparison Mercedes-Benz C Class Diesel Saloon C300h Sport Premium Plus 4dr Auto

0-62 mph in 6.4 seconds, 78.5 mpg, Company car tax at 20% prsonal tax rate= £100.98 per month

Mitsubishi Outlander Estate2.0 PHEV GX3h 5dr Auto

 

0-62 mph in 11 seconds

156 mpg

Co2 Emissions 42 g/km

Company car tax at 20% personal tax rate =

£39.96 per month

 

 

Non-Hybrid Comparison Mitsubishi Outlander Diesel Estate 2.2 DI-D GX2 5dr

0-62 mph in 10.2 seconds, 53.3 mpg, Co2 emissions 138 g/km, Company car tax ar 20% personal tax rate =£103.33 per month

If you are not keen on any maths at all, our website will give you a guide to company car tax payments for each specific vehicle - no calculator needed !

Prices and tax bands are correct at the time of writing. Please refer to our website for the most current leasing prices and to the latest government information on tax bands

 

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