Company Car Tax 2014-15 – Allowable Expenses and Benefits

Changes from 2014-15

The lower threshold will be reduced from 115g/km to 110g/km.

11 per cent will now apply to cars with CO2 emissions of 76g/km to 94g/km for petrol cars and 13 per cent for diesel cars.

The appropriate percentage will increase by 1 per cent for all vehicles with CO2 emissions between 95g/km and 210g/km, to a maximum of 35 per cent.

Here are some examples of the lower % benefit in kind (BIK) tax:

Model List Price CO2 emissions g/km BIK % Tax at 20% Tax at 40%
Audi A3 Hatchback 1.2 TFSI 105 S Line 3dr £21,655 114 15% £650 £1,300
BMW 1 Series Hatchback 116d ED 3dr £20,830   99 15% £625 £1,250
Fiat 500 Hatchback 0.9 Twin Air 105 GQ 3dr £15,260   92 11% £336 £   672
Ford Fiesta Hatchback 1.6TDCI 95 Titanuim ECOnetic 3dr £16,345   87 13% £425 £   850
Hyundai i10 Hatchback 1.0SE Blue Drive 5dr £  9,795   98 12% £235 £   470
Mini Cooper Hatchback 1.5D 3dr £16,450   92 13% £428 £   856
Toyota Auris Hatchback 1.8 VVT-I Icon Hybrid 5dr £20,595   84 11% £453 £   906
Volvo V40 Hatchback 1.6D2 115ES 5dr £20,345   88 13% £529 £1,058

Of course, the lowest appropriate percentages are still 0 per cent and 5 percent.

The 0% BIK cars are electric, for example BMW i3 Electric Car 127kW Auto Electric drive-train, 5 door, the list price for this is £30,625 but you’ll pay £25,625 with the £5,000 government subsidy.

In addition, these cars also benefit from lower road tax:

Petrol car (TC48) and diesel car (TC49)

Band CO2 emission (g/km) 12 months rate 6 months rate
A Up to 100 £   0.00 Not available
B 101-110 £ 20.00 Not available
C 111-120 £ 30.00 Not available
D 121-130 £110.00 £60.50
E 131-140 £130.00 £71.50

If you want advice on your company car tax position and what may be best for you and your business, please get in touch.

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