Plenty of changes announced here, most of which will not come in for a few years as a company car is not something which can be changed overnight.
The time scale means that careful planning can reduce the impact of the changes and we are ready to advise you of your options.
The changes include the following examples:
- 100% tax write-off for the company on a car purchase currently applies if CO2 emissions do not exceed 110 g/km. That is reducing to 95 g/km from April 2013.
- For other cars the annual tax write-off is basically either at 18% or 8%, depending on CO2 emissions. Currently the cut-off point is CO2 emissions of 160 g/km but again from April 2013 that is reducing to 130 g/km.
- The income tax charge on the user of a company car will be facing increases, some of which are quite nasty. About the only good news is that a diesel company car will no longer have a 3% supplement to the normal tax charge – but you will have to wait until April 2016 for that.
A full review is needed of the company car policy for businesses and drivers, so do contact us to explain the options.