Tax efficient company cars

Here are the five most tax-efficient company cars you can buy this year: Jaguar I-Pace — Starting at £ 64, the I-Pace is far from being the cheapest electric vehicle around. But as a company car it’s extremely tax-efficient.

Your company car is classed as a fringe benefit by the Government, so it incurs Benefit-in-Kind (BiK) taxation. What you pay is based on a percentage of the car’s P11D value, which is its price.

Tax on company cars You’ll pay tax if you or your family use a company car privately, including for commuting. You pay tax on the value to you of the company car, which depends on things like how.

Are company cars taxable? What is the best low tax company car? How does company car tax work? The combination of petrol and battery power suits those who do a mix of motorway and city driving, as range anxiety (the worry you will run out of battery charge) is not an issue.

Tax efficient cars Cars are shown here ranked according to the "Tax Over Price ratio ". Of course this is not the only way of measuring "tax efficiency", but it does act as a simple guide. Company cars are taxed less as a salary sacrifice scheme and if they are under a certain emissions band, then you could be exempt from company car tax altogether.

Plus, your company car can either be “off balance sheet” or you can claim back the VAT (depending on which contract you choose). Electric vehicles used to be exempt from the BIK rules, and were a good tax-efficient option.

If you want Scandi cool for your company car, then the XCis for you. Getting the best out of a PHEV as a company car.

In order to achieve the best efficiency from a PHEV company car, it’s important to use the battery and the zero emission mode. Company cars have long been used as a means for businesses to reward and retain staff as an extra perk on top of a standard salary. Unfortunately, the Government or, more precisely, HM Treasury, is. Multiply the P11D value by the car’s company car tax rate (dependent on COemissions) – this will give you your BIK amount.

Multiply the BIK value by your personal tax rate (which will be per cent, per cent or per cent, depending upon how much you earn). The figure you’re left with will be the amount of company car tax payable.

The Audi E-Tron is one of most tax-efficient company cars on the market. All-electric, the Audi E-Tron is everything you’d expect from an Audi model bar the hefty diesel engine. Fitted with air suspension and adaptive dampers, the Audi E-Tron has been engineered for precision and comfort. A company car is taxed via a sliding BIK rate.

How much you pay depends on the COemissions, the P11d value of the car and your personal tax bracket. This means how much you pay essentially depends on your personal tax rate. Running a company car could prove an expensive business, but not if you pick one of these.

All of these cars are exempt from benefit-in-kind tax or are in the lowest band. The car and fuel benefit is then taxed at the individual’s marginal tax rate and the company will pay Class 1A National Insurance on the benefits at 13. Therefore, if you’re considering purchasing a company car, you’ll want to know which makes and models offer the most tax efficient options for you and your business.

The Toyota Corolla Touring Sports estate hybrid is a great choice for company -car drivers who are looking for impressively low running costs, low company car tax and lots of space.

The most popular searches on What Car ? Andy Keates investigates a case where the directors were provided with company cars and fuel but were judged not to have received a benefit, so no tax or class 1A NIC was due. If a company provides a car to a director for private use, this will normally generate a taxable benefit and a class 1A NIC liability.

HSL is a company owned 50:by its two directors, Paul Harrison and Lee Solway. Benefit in kind tax on company cars is based on carbon dioxide emissions and the list price. Different rules apply according to the type of fuel used.

Choose the car using the form below.