HOW TO CALCULATE YOUR TAX BILL

Don’t confuse Contract Hire rates with your own Company Car Tax Bill. The Land Rover Discovery TD5 E 5st and the BMW 320d SE each have a typical contract hire rate of £440, but the BMW will cost the 40% tax payer £1405 less this year in company car tax (also known as Benefit-in-kind-tax).

To see the CO2 rating and tax percentage of your chosen car(s), please click here.

There are two ways to reduce your tax bill on a company car – choose one with a lower list price and / or one in a lower tax scale. Company cars are taxed on their list price (not transaction price), excluding road tax and registration fee. This is recorded on a form called P11D and includes optional equipment, so think hard before loading up your car with all those extras ! Adding Leather, Metallic paint and an ‘auto’ box onto your Mercedes E200 Classic for instance will cost you more than £900 in extra tax over 3 years.

As for the tax brackets, cars are graded into percentage bands on their official carbon dioxide (CO2) emissions and their fuel type; the lower the percentage banding, the lower the tax bill (see table 1). There are discounts that use alternative fuels and a 3% surcharge for diesels that fail to meet the latest Euro IV emission regulations.

Click here for all information required regarding CO2 levels and your tax liabilities.

Diesel Emissions

You must add 3% to the tax band of any diesel which does not meet Euro IV emissions standards. These will become compulsory for new cars from Spring 2005 and all models 6 months after that. Any diesel which complies now is exempt from the penalty. These include:

Audi

A2 1.4Tdi, A3 1.9 and 2.0Tdi, A4 2.5Tdi, A6 2.5Tdi and   A4 Cabriolet 2.5Tdi

BMW

318d, 320d saloon, estate, coupe and compact, 330Cd Coupe

Citroen

C3 1.4Hdi

Fiat

Punto 1.3 Multijet

Ford

Mondeo Saloon, hatchback and estate, 2.0TDCi 115bhp and 130bhp

Honda

Accord saloon and estate 2.2CDTi

Mazda

6 Saloon and hatchback 2.0 121bhp and 136bhp, 6 estate 2.0 121bhp

Skoda

Superb 2.5Tdi

Toyota

Corolla 2.0 D-4D and Avensis saloon, hatchback, estate and verso MPV 2.0 D-4D

Vauxhall

Corsa 3 and 5 door hatch 1.3CDTi and 1.7CDTi, Meriva 1.7CDTi and Astra Saloon, hatchback and estate 1.7CDTi

Volkswagen

Golf 3 and 5 door hatchback 1.9Tdi, 2.0Tdi GT, 2.0Sdi, Beetle 1.9Tdi, Passat saloon and hatchback 2.5Tdi, Touran 1.9Tdi and Touareg 5.0TDi

Car Leasing Direct can cater for all of your needs. We would be more than willing to quote you on the following types of contract: Contract Hire, Company Car Contract Hire, Car Leasing, LPG Car Leasing, LPG Contract Hire, Personal Contract Lease, Personal Contract Hire, PCP, PCH.

At Car Leasing Direct, we specialise in close personal attention and know that we have some of the most competitive prices to suit your budget. Not only do we gain quotes from our own system, but we also have many other finance suppliers, all of whom offer very competitive prices. Therefore, why not let us get your company car leasing quotation or Personal contract lease and do the hard work for you? Click here or simply call 01526 - 351393.

All car images contained within this site are for illustrative purposes only

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