COMPANY CAR TAX

New tax changes will be coming into effect on April 1st 2009 and this will have an effect on car leasing rentals, to see if this has an impact on you please read here .

Company car drivers pay tax on a percentage of the taxable value of their cars. This percentage is decided according to the cars emissions, so the lowest emission cars emitting less than 140g/km or less qualify for the lowest tax band, which is 15%.

This then rises for every 5g/km to the highest polluters at 235g/km and above and these vehicles are charged 35% of the cars value. From April 2008, a new low company car tax band of 10% will be introduced for vehicles emitting less than

120g/km of CO2 or less. So the message here is pretty simple, the more economical your car, the less you'll pay in tax.

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Tax & legislation

New Government plans aim to reduce CO2 emissions in theUK by 25% by 2012. This is a colossal undertaking and one that is not being taken lightly by our Government.

Tax changes and congestion charging are two means recently introduced by the Government, in the hope that our collective carbon footprint will be reduced.

CO2 reduction and environmental concerns are here to stay, and as a result, the costs of running an environmentally unfriendly car will continuously rise.

Tax and legislation should influence your choice of car, both now and in the future

Reducing Tax bills

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 E220 Classic for instance will cost you more than £800 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.

There are discounts that use alternative fuels and a 3% surcharge for diesels that fail to meet the latest EuroIV emission Regulations.

You must add 3% to the tax band of any  diesel which does not meet Euro IV emissions standards

USEFUL LINKS

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.