Taxation Advice...

For the past few years, the general consensus has been that if you have a Company Car, you will pay over the odds in Company Car tax. This has put many drivers off taking the option of a Company Car, instead taking a 'cash allowance', with many employers paying an additional sum in an employees salary in order for them to arrange their own car. This option has been popular with employers and employees alike, as the employer reduces their internal administration, whilst the employee benefits from additional choice on vehicle and cost.

However, the mood seems to be changing as businesses and employees realise that the tax situation doesn't have to be as taxing as they thought! For since April 2009, businesses have been able to recover more of the cost of lease cars against their Corporation Tax bill - in fact, up to 100% on cars under 160g/km CO2 - welcome relief given some more uncertain economic conditions.

Plus vehicle manufacturers have been working hard to release new models with very low CO2, maximising driver tax efficiency. Employees are increasinly seeing examples of vehicles where their Benefit in Kind liability is so low, that it actually makes more financial sense to take a company car, rather than pay Income Tax andNational Insurance on their Cash Allowance!

The key figure in terms of CO2 is -160 - if the vehicle is under 160g/km, businesses will benefit from maximum tax relief, and employees will pay less benefit in kind tax. However, if you choose a vehicle which is under 110g/km CO2, then there are even bigger savings, and with much greater choice such as the new Volkswagen GolfBluemotion - at just 99g/km CO2 -now available, employees can find themselves a really decent car, paying the least amount of tax on this benefit as possible.

Capital Allowances and Corporation Tax

For businesses who want to know more about the Corporation Tax benefits available when you lease, or purchase a new vehicle, we've put together a couple of handy factsheets to guide you through some of - the basics....

Sole Traders/Partnerships - Download our Business Car Taxation Factsheet by Clicking Here

Limited Companies/PLCs - Download our Business Car Taxation Factsheet by Clicking Here

Further information on Corporation Tax - including bespoke Tax Calculations - are available via Comcar.co.uk

"Benefit in Kind" Tax - How Much Company Car Tax will you pay?

We've found a great website where you are able to calculate your own personal BIK tax liabality on pretty much any vehicle

Click Here to visit Comcar.com and compare Company Car Tax today!

Additional Information can also be found via HM Revenue & Customs by Clicking Here

Get an Instant Online Quote for Car Insurance - Click Here

Document downloads:

Concept Vehicle Leasing - Brochure (919KB)