With the reduction of CO2 emissions being the at the forefront of any governments political agenda, individuals who drive a more efficient car are now being rewarded through lower Benefit in Kind Tax. With the latest Capital Allowance rules, the Government is to incentivize car drivers whose vehicles emit less than 160 g/ km CO2. At Perkins we have a great selection of Nearly New Ford cars that have lower emissions for company car usage. Fiesta /Focus /Mondeo / C- Max / Kuga / S-Max / Galaxy all have models in the range to get you under that 160 g/ km Co2 Rating.
If your business purchases a vehicle that is over 160g/ km then you will only be able to write down 10% of it’s value each year on a reducing balance basis. If however your new new purchase has emissions of 160g/ km or less, the write down allowance (WDA) is 20% which allows the business to claim back the cost of the vehicle more quickly.
Here is is a fairly simple set of calculations that Ford have supplied us with.
Taxable Value of petrol car £16000 (example) - CO2 Emissions of 165g/ km = 22% - Employee tax level = 40% - - - - -£16000 x 22% x 40% = £1408 Tax payable (for tax year 2010/2011)
Please note that there is a 3% surcharge for a diesel car.
We hope this helps you company car users out there a little bit.Remember please that you save thousands on a Nearly New Ford at Perkins and we can help you to make the right choice for your needs. Call us for any motoring advice you may need on 01371 87 6622 for Dunmow or 01376 550899 for Rayne.
