The Cost of Company Cars is on the Rise

by | Nov 13, 2014 | Accountancy | 81 comments

HMRC has published tables showing the percentages that will be applied in the calculation of company car benefit charges for the next few years. It is immediately evident from the tables that, for the majority of the CO2 emission bands, the percentage applied to the list price of the car will be jumping up by 2{af331c3cb52abe27a47f1f5b71fb5068c938efb8d5a4e6cddc7f2780f48bb99c} year on year. This will have the effect of making the car benefit charge for the same car considerably higher each year despite the car being older and presumably less desirable to drive around in. As an illustration of this, a car with a list price of £20,000 and CO2 emissions of 118g/km would generate a benefit in kind value of £3,200 in 2014/15 (based on an appropriate percentage of 16{af331c3cb52abe27a47f1f5b71fb5068c938efb8d5a4e6cddc7f2780f48bb99c}) and a benefit in kind value of £4,800 in 2018/19 (based on an appropriate percentage of 24{af331c3cb52abe27a47f1f5b71fb5068c938efb8d5a4e6cddc7f2780f48bb99c}). The benefit value would therefore be 50{af331c3cb52abe27a47f1f5b71fb5068c938efb8d5a4e6cddc7f2780f48bb99c} higher on the same car despite it being 4 years older. This in turn would result in an increased tax charge from £640 to £960 over the 4 years for a basic rate tax payer or from £1,280 to £1,920 for a higher rate tax payer. The percentage hike is even more significant in respect of very low CO2 emission cars (<50g/km) which, after a similar 2{af331c3cb52abe27a47f1f5b71fb5068c938efb8d5a4e6cddc7f2780f48bb99c} increase each year for the next 3 years, will experience a 4{af331c3cb52abe27a47f1f5b71fb5068c938efb8d5a4e6cddc7f2780f48bb99c} hike from the 2017/18 tax year to 2018/19.

In light of this, clients with older company cars may wish to consider switching to a newer vehicle with a simlar list price but lower CO2 emissions to prevent the car benefit charge from escalating.

81 Comments

  2. ogłoszenia samochody on 05/01/2021 at 4:42 PM

    Bardzo lubię patrzeć i uważam, że ta strona zawiera naprawdę przydatne rzeczy!

  3. sildenafil buy on 07/01/2021 at 4:47 AM

    I am just writing to make you understand what a outstanding experience my wife’s girl obtained using your webblog. She noticed so many pieces, which included what it is like to possess an excellent helping spirit to let other people with no trouble learn specific specialized things. You truly surpassed readers’ expected results. Thank you for providing these priceless, trusted, informative as well as fun tips about this topic to Lizeth.

  4. cbd oil on 07/01/2021 at 4:53 AM

    I intended to create you a little note just to give thanks as before for all the exceptional guidelines you’ve discussed at this time. It has been certainly incredibly generous of people like you to allow extensively all that a lot of folks could have distributed as an e-book in order to make some bucks for their own end, chiefly considering the fact that you could have done it if you considered necessary. The creative ideas additionally acted as the easy way to be certain that most people have a similar dream just like mine to find out a little more in regard to this condition. I’m certain there are lots of more enjoyable moments ahead for individuals that examine your blog.

  5. CELEXA pills on 08/01/2021 at 8:33 AM

    My spouse and i got quite happy that John could deal with his preliminary research through the ideas he grabbed out of your web page. It’s not at all simplistic to just continually be giving out points that many others have been selling. And we also fully understand we have got the website owner to be grateful to for that. The main explanations you have made, the simple site menu, the friendships you can help foster – it’s got many impressive, and it’s really helping our son and the family imagine that the matter is excellent, and that is pretty indispensable. Thank you for everything!

  6. paxil cheap on 09/01/2021 at 4:16 AM

    I’m also commenting to let you be aware of of the excellent discovery my cousin’s child enjoyed checking your blog. She discovered a wide variety of details, most notably how it is like to have a marvelous coaching heart to get many more easily fully understand certain complicated matters. You actually did more than my desires. I appreciate you for delivering such great, healthy, educational and also cool guidance on that topic to Evelyn.

  7. treatments for psoriasis on 22/02/2021 at 7:56 AM

    Today, considering the fast way of life that everyone leads, credit cards have a huge demand in the economy. Persons throughout every area are using the credit card and people who are not using the card have arranged to apply for 1. Thanks for discussing your ideas on credit cards. https://psoriasismedi.com treatments for psoriasis

  8. high blood pressure meds on 22/02/2021 at 11:06 PM

    Today, taking into consideration the fast chosen lifestyle that everyone is having, credit cards get this amazing demand throughout the market. Persons out of every arena are using credit card and people who not using the credit card have prepared to apply for just one. Thanks for spreading your ideas in credit cards. https://hypertensionmedi.com high blood pressure meds

  10. Wesleytup on 06/03/2021 at 5:59 AM

    generic tadalafil buy tadalafil
    generic tadalafil

  11. RandyGAX on 08/03/2021 at 7:00 PM

    generic pills without a doctor prescription: https://genericwdp.com/ meds online without doctor prescription

  16. 1% ivermectin on 12/03/2021 at 5:50 AM

    ivermectin pronunciation ivermectin online side effects of ivermectin in dogs how long after taking ivermectin will you notice results

  19. Waynenet on 13/03/2021 at 3:50 PM

    buy viagra online canada п»їviagra pills
    cost of viagra

  21. Waynenet on 15/03/2021 at 12:29 PM

    over the counter viagra viagra online usa
    viagra from canada

  27. MarvinSpela on 22/03/2021 at 3:51 PM

    erectile dysfunction medications buy ed pills from canada
    cheap ed pills from india

  28. MarvinSpela on 23/03/2021 at 2:20 PM

    cheap ed pills usa cheap ed pills
    cheap ed pills

  31. MarvinSpela on 29/03/2021 at 12:39 AM

    neurontin 330 mg: generic gabapentin – neurontin 400 mg tablets

  34. Franktix on 02/04/2021 at 3:57 AM

    order zyvox online: buy zithromax
    keflex capsules

  37. Alfreddaw on 07/04/2021 at 7:07 PM

    mail order erectile dysfunction pills: generic viagra pills red erectile dysfunction pill

  38. Alfreddaw on 08/04/2021 at 8:02 PM

    buy erectile dysfunction pills online: levitra pills pills for erectile dysfunction

  41. asmr https://0mniartist.tumblr.com on 11/04/2021 at 12:24 PM

    Hi, I believe your blog could be having web browser compatibility issues.
    When I look at your website in Safari, it looks fine however, when opening
    in Internet Explorer, it’s got some overlapping issues. I just
    wanted to provide you with a quick heads up! Aside from that, great website!
    asmr 0mniartist

  42. 0mniartist on 12/04/2021 at 10:18 AM

    Everything is very open with a precise description of
    the issues. It was truly informative. Your site is very helpful.
    Thanks for sharing! asmr 0mniartist

  44. http://signup.com/go/xnjWQsQ on 14/04/2021 at 12:34 PM

    Really no matter if someone doesn’t be aware of then its up to other users that they will
    help, so here it occurs. 0mniartist asmr

  47. http://tinyurl.com/yh4yvkv4 on 15/04/2021 at 9:52 PM

    Great information. Lucky me I ran across your blog by chance (stumbleupon).
    I have book-marked it for later! 0mniartist asmr

  50. RafaelSen on 18/04/2021 at 3:52 AM

    best medication for ed: buy ed pills – buy ed pills

  52. RafaelSen on 19/04/2021 at 11:30 PM

    metformin 825 mg: buy metformin online – metformin 2000 mg daily

  54. JamesEmeme on 21/04/2021 at 9:36 AM

    how much is valtrex: valtrex for sale – can you buy valtrex over the counter in canada
    cheapest propecia for sale

  55. JamesEmeme on 22/04/2021 at 3:09 AM

    propecia pills: propecia for sale – where to buy finasteride
    cheap propecia canada

  59. JamesEmeme on 25/04/2021 at 12:55 AM

    ventolin best price: ventolin for sale – how to get ventolin over the counter
    finasteride 5 mg prices

  60. JamesEmeme on 25/04/2021 at 6:12 PM

    buy propecia: generic propecia – finasteride for sale
    where to buy finasteride

  62. GeorgeJem on 26/04/2021 at 6:37 PM

    ed drugs list: ed pills gnc – treatments for ed
    top ed pills

  63. of gamefly on 27/04/2021 at 9:51 PM

    I like the helpful info you provide to your articles.
    I will bookmark your weblog and take a look at once more here
    regularly. I’m quite certain I’ll be told a lot of new stuff right right here!
    Good luck for the following!

  64. asmr or on 29/04/2021 at 12:54 AM

    Hi there, just became aware of your blog through
    Google, and found that it is really informative.
    I am gonna watch out for brussels. I’ll appreciate if you
    continue this in future. Numerous people will be benefited from
    your writing. Cheers!

  65. Raymondrek on 29/04/2021 at 2:18 AM

    mexican pharmacy what to buy rxpharmacycoupons – online pharmacy in germany
    us pharmacy

  66. asmr on on 29/04/2021 at 7:07 AM

    Thanks for your personal marvelous posting! I genuinely enjoyed reading
    it, you are a great author.I will make sure to bookmark your blog and
    definitely will come back very soon. I want to encourage
    yourself to continue your great work, have a nice afternoon!

  67. asmr there on 29/04/2021 at 12:57 PM

    I have read so many articles on the topic of the blogger lovers but this paragraph is genuinely a fastidious paragraph, keep it
    up.

  68. Raymondrek on 29/04/2021 at 7:53 PM

    tops pharmacy ed drugs – pharmaceuticals online australia
    no prescription needed canadian pharmacy

  69. WilliamRug on 03/05/2021 at 3:14 AM

    canadian pharmacy cialis 20mg: ed pills – cialis for daily use

  70. WilliamRug on 03/05/2021 at 9:00 PM

    cost of cialis without insurance: ed drugs – buy cialis insurance

  71. gamefly where on 03/05/2021 at 11:46 PM

    First of all I would like to say great blog! I had a quick question which I’d like to ask if you
    do not mind. I was curious to find out how you center yourself and clear your mind before writing.

    I have had a tough time clearing my thoughts in getting
    my ideas out. I do enjoy writing however it just seems like the first 10 to 15 minutes are lost simply just trying to figure out how to
    begin. Any ideas or tips? Cheers!

  72. asmr the on 04/05/2021 at 10:55 AM

    Wow, this piece of writing is pleasant, my younger sister is analyzing
    these kinds of things, so I am going to tell her.

  75. bit.ly on 07/05/2021 at 8:31 AM

    You can certainly see your enthusiasm within the article you write.
    The arena hopes for more passionate writers like you who are not afraid to
    say how they believe. All the time follow your heart.

  78. that asmr on 09/05/2021 at 2:11 AM

    My family always say that I am killing my time here at web, except I know I am getting familiarity every day by reading such pleasant articles.

  79. WilliamRug on 09/05/2021 at 3:25 PM

    viagra cost: buy viagra order – viagra coupons
    generic viagra without a doctor prescription

Submit a Comment

Your email address will not be published.