Company car changes

News: May 2012

Company car changes

A number of changes to the income tax charge have been announced, which we touched on in the April Tax E-News. We now have more details and here are a few tasters:

  • Increase in income tax charge of 1% of list price for 2013/14
  • Another 1% increase for 2014/15
  • A further 2% increase for 2015/16, and no longer will there be a nil tax charge for an electric company car
  • Another 2% increase for 2016/17, but the 3% diesel supplement is due to go
  • 100% tax write-off on buying a low emission company car due to end on 31 March 2015, and from April 2013 the maximum emissions to qualify for 100% tax relief goes down to 95 g/km

As always, plenty of notice has been given but forward planning is essential in this area. We are ready to discuss the company car policies with employers of all sizes and with the car users.