Company Car Tax Bands

Company Car Tax Bands

 

Company Car Tax Bands.If you are lucky enough to be offered a company car as a BIK or as part of your employment perks you will have to pay tax on it (swings and roundabouts hey!) The tax itself is calculated in a fairly straight forward way. The tax is payable on a certain percentage of the P11d value of the vehicle in question. The percentage is based on the emissions of the vehicle. This percentage is then further divided up based on your income level (stick with us, we’re almost there!)Company Car Tax Bands

If you are earning £32,010 per year or less you get to pay the lowest percentage of this amount at 20%. Unfortunately, if you earn even just £1 more you’ll find yourself paying 40% of that amount in tax (quite a steep hike if you ask us!) If you’re earning the big bucks and bringing in more than £150,000 a year you’ll be paying 50% of the P11d percentage. You’ll often find that this money is deducted from your salary on a monthly basis.Company Car Tax Bands

Company Car Tax Bands – Which One’s For You

So, you want to pay as little company car tax as possible, how do you go about it? The simple answer is to go for an electric vehicle (EV) and never look back! Well, not until April 2015 anyway, which is when they will start being taxed. At this moment in time an EV costs nothing in company car tax terms as it produces zero on-road emissions therefore allowing it to fall into the lowest company car tax bands. However, if you aren’t a full electric kind of person the next best option would be a hybrid. Although they are not tax free they are rated under the same scale as diesel and petrol vehicles so fall into the VERY low tax bands.

Company Car Tax Bands

Short of adopting any form of battery power under your bonnet your best bet would be to go for the lowest emission car you could. Thankfully, due to advancements in fuel efficiency technology, most brand new cars emissions are extremely reasonable (as long as you’re not interested in a 4 litre V12 of any sort!) An important note. Not too long ago there was an £80,000 cap on how much tax was payable on your company car. However, as of 1 April 2011, this was abolished.v

Lowest Company Car Tax Vehicles

So, now you know how company car tax bands work and what types of car are the cheapest, you probably want to take a look at some of the lowest company car tax vehicles don’t you? Luckily for you we’ve put together a list of the lowest company car tax vehicles that you can lease from us (it just so happens they are also congestion charge exempt so if you live or commute in London it’s a win win situation!) Our lists dynamically update based on CAP’s constantly refreshing databases so you can be sure you’re seeing the most up to date information available. Whether you are interested in the new BMW I3 or something a bit sportier like the Porsche Panamera Saloon there’s something for everyone!Company Car Tax Bands