If you are concerned about the effect your motoring has on the environment or if you are looking to keep your company car tax bill down, this page will list our lowest CO2 emitting cars which means they best meet those two requirements. Company car tax is worked out using the CO2 emissions of the car. The government produces a cross reference table that tells you what Benefit In Kind (BIK) % you will pay in relation to your vehicles CO2 output.
So for example, if your car is a petrol vehicle and produces between 130 and 134 g/km of CO2, in the tax year 2017-2018 your BIK liability will be 25% of the P11d value of your vehicle. The P11d value of your vehicle is essentially the price of the car, including any options you might add, but less the non-taxable costs, such as the registration fee and the first year’s road tax. You will be then taxed on your BIK liability at your marginal rate of income tax, which depends on your income. Therefore the lower the CO2 emission of your car, the lower your tax bill is likely to be.
So to complete this example, for a £30,000 P11d vehicle, a 25% BIK rate will generate a BIK liability of £7,500 and if your marginal rate of income tax is 40% you will pay £3,000 company car tax per annum or £250 per month
Have a browse of the low-CO2 emission vehicles below and get in contact if anything catches your eye:
