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| How will the tax charge affect you?
The tax charge introduced in April 2002 is based on a percentage of the car's price, but the percentage alters according to the level of the car's carbon dioxide emissions.
Needless to say, the higher the emission, measured in grams per kilometre, the higher the tax charge, with a maximum charge of 35%.
For employees travelling less than 2,500 business miles, the new scheme will be advantageous or, at worst, neutral. There is no reduction in the new charge for higher annual business mileages, so drivers travelling 2,500 miles or more annually will need to drive a relatively efficient car to avoid being worse off.
Drivers travelling over 18,000 business miles or more will be worse off unless they drive a car in the very lowest emission band.
Lovewell Blake clients
You, or your staff, can email or ring your usual Lovewell Blake tax contact and we will tell you how the tax charge will affect you.
More information for employers
If you are an employer and want to know how the tax could affect your company car drivers, and what alternative schemes you might want to consider, contact one of the experts listed below. | |
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