Company cars
-
Mark Morton 
27 September 2019 00:00
Company cars have been subject to a new of significant tax rises over recent years but the Government has published rates well in advance.
Following changes to vehicle emission testing, the Government has decided to:
- Reduce company car benefit rates by 2% in 2020/21 before returning to planned rates over the following two years, increasing by 1% in 2021/22 and 1% in 2022/23. This applies to company cars first registered from 6 April 2020. There are no changes for cars registered before this date.
- All zero emission company cars will attract a reduced appropriate percentage of 0% in 2020/21 and 1% in 2021/22, before returning to the planned 2% rate in 2022/23.
The effect of this is as follows:
|
2020/21 |
Cars registered pre 6.4.20 |
Cars registered after 5.4.20 |
|
CO2 emissions |
% of list price taxed |
% of list price taxed |
|
0 |
0 |
0 |
|
1-50 |
|
|
|
Electric range - 130 or more |
2 |
0 |
|
70 - 129 |
5 |
3 |
|
40 - 69 |
8 |
6 |
|
30 - 39 |
12 |
10 |
|
under 30 |
14 |
12 |
|
51-54 |
15 |
13 |
|
For every extra 5 |
+ 1 |
+ 1 |
|
160 and above |
37 |
n/a |
|
170 and above |
n/a |
37 |
You may wish to inform clients of the changes before they invest in new vehicles.
