Company cars are getting more expensive

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17th February 2016

Company cars are getting more expensive in terms of benefit in kind and a persons choice of company car or not must be based on the future changes which will come into force, as this will affect their tax liability moving forward.

The benefit in kind charge on an individual is based on the cash equivalent of the car. This taxable cash equivalent is based on the list price of the car multiplied by a %. The percentage is based on the Co2 emission levels of the car in question.

Moving forward these %s are to increase which will make the potential tax liability greater moving forward for the same vehicle.

Moving forward the percentages are altering as follows…..

0-50g/km increases from 5% to 7% from April 2016

-9% from April 2017

-13% from April 2018

-16% from April 2019

51-75g/km increases from 9% to 11% from April 2016

-13% from April 2017

-16% from April 2018

-19% from April 2019

76-94g/km increases from 13% to 15% from April 2016

-17% from April 2017

-19% from April 2018

-22% from April 2019

1% increases for every 5g/km over 94g/km

Maximum benefit increases to 37% in 2015-16

The 3% supplement for diesel cars is to remain until 2021 This was due to be abolished from April 2016

We are helping many people look at their situation in relation to Company Car V Car Allowance.

Please call if you would like to discuss this or any issue. We are happy to offer a free 1 hour meeting to go over any issues or questions you have.