There are fifteen new company car tax bandings, eleven of which apply to low emissions vehicles. of copyright. Latest Ford Focus deals from £8,868Finance from £151 per month. Thanks to a peppy yet frugal 1.0-litre petrol engine and a starting price of around £9,500, company car tax is incredibly low. From next year, company car tax on electric cars and some hybrid models will be slashed, making battery-powered models by far the cheapest choice for business users. This will lower your company car tax bill. Cars that emit no emissions at all will be taxed 2%, and those that emit between 1g/km and 50g/km of CO2 will be taxed between 2% and 14%, depending on how many zero emissions miles each car can do. Until the 2020 company car tax changes, the Hyundai Ioniq PHEV sits in the lowest company car tax band. And maybe you’re thinking that it’s time for you to get a new company car, so which cars are the lowest for company car tax once the new bandings come into effect? Electric Car Reviews Independent reviews of all electric cars on sale in the UK past and present. The good news is that company car tax (also known as a benefit-in-kind tax) is calculated from a formula, albeit a formula that changes every year. Currently a trend-setter as the only plug-in hybrid in the luxury saloon sector, although more will follow as other manufacturers launch large cars with plug-in hybrid powertrains. Granted the Astra’s technology isn’t quite as slick as some of its German counterparts, but if you are after a diesel family-sized vehicle with low company car tax, the Astra is hard to ignore.Vauxhall Astra buying guide, Latest Nissan Qashqai deals from £7,995Finance from £136 per month. So, which models hit all their targets, and which should be avoided? The combination of petrol and battery power suits those who do a mix of motorway and city driving, as range anxiety (the worry you will run out of battery charge) is not an issue. This week marks the start of a new tax year, which is an important time if you’re a company car driver. Critics, of which there are many (including the BVRLA)  have said that these new changes will negatively impact those with low emission cars, as the BIK rates will be considerably less than the cash income, so will be taxed more. Of course, company cars aren’t just limited to, well, cars. Hybrid SUVs are suddenly big business for all kinds of European car-makers. That’s where the Nissan e-NV200 Combi comes in, Completely electric, it has a range of 106 miles and you can also lease the battery. The changes in tax deduction rules place pressure on states to tighten vehicle reimbursement rules, and company car allowances face higher levels of scrutiny. However, these new rules only applied for cars released after 2017. Mercedes-Benz has always been a popular choice for company cars due to their executive style and good residual value so it’s even better to see the ultra-low emission C Class on our list. This measure is simply the company car tax payable at the higher personal rate expressed as a percentage of the vehicle's current list price. They are typically best for those who do a lot of stop/start driving as they recoup energy that is otherwise lost during braking, to charge a small battery pack. There is, however, a ray of hope. By now you’ve probably realised that there’s a good chance you will pay more in company car tax when it comes into effect next year. Some hybrids offer low CO2 emissions which, combined with a low P11D value, can offer much reduced company car tax compared with petrol or diesel rivals. - For more news, reviews and Top Tens, visit https://www.honestjohn.co.uk It is familiar, compact, and claims 134mpg. By entering your email address you agree for OSV to store and process your data and send you weekly / monthly newsletters. Due to the altered rules that will come in the next few years, we have named ten of the best low tax company cars along with their corresponding benefit-in-kind (BiK) rates. 28 February 2020. The 0.8 CDI engine promises low carbon dioxide emissions levels, and it recorded 105g/km in our tests. The Peugeot 108 is about as good as it gets for company car drivers looking for a small petrol runaround, which won’t often go on long trips, and has low tax bills. Even the lowest-emission cars will be subject to tax rises over the next five years, but as manufacturers strive to reduce emissions, company car drivers and employers can look to maintain tax rates that are similar to, or lower than, the current rates. Nissan Leaf – 106g/km Mitsubishi Outlander PHEV 3h - £93/month Top of the tree for space, ability and costs is the Mitsubishi Outlander PHEV. 10 October 2014 by Graeme Lambert. There are fifteen new company car tax bandings, eleven of which apply to low emissions vehicles. Add to that the frugal nature of Nissan’s 1.5-litre dCi diesel and the Qashqai is an excellent company car for those who spend longer than they care to admit driving on the UK’s road network.Nissan Qashqai buying guide, Phone lines open Mon to Thurs, 9am-8pm; Fri to Sun, 9am-5pm. Hybrid cars fall into two categories: plug-ins (covered above) and standard hybrids. It is so popular in fact, it was the best selling SUV in the UK during 2017 and the fourth best overall. Top 10 Best Mid-size Executive Cars 2020 | Autocar There are only two specs to choose from with the Ioniq PHEV – Premium being the ‘entry-level’ model – but equipment is plenty on both. Best executive cars A top executive car needs to be good-looking, pleasant to drive or be driven in, and relatively fast. That said, entry-level models aren’t bestowed with many luxuries, meaning the jump up to models further up the range – such as Allure – makes the extra expenditure worth it. Volkswagen Golf. The best company cars obviously need to be kind to your wallet, but also need to be comfortable and practical enough to make every journey a joy. 2002-2021 Dennis Buyacar Ltd t/a "Buyacar" - Furloughed staff can save thousands in tax by handing back company cars If the car is not available for 30 consecutive days or more, staff can cut their tax … Fast low-tax company cars. Another electric car, the Nissan Leaf is a serious contender against the Toyota Prius. Tax busters: Choose your company car wisely and you could find yourself driving one of the fastest or most luxurious cars on sale while paying very little company car tax. These new bandings mean that you could end up paying more for your company car than you were before, depending on how much CO2 your car emits. Tax efficient cars. If you’re looking more for of a saloon without compromising your environmental conscience then you might want to look at the. Even though its price means it sits nearer the top of the company car food chain, zero emissions bring the amount of tax you pay crashing down – especially compared to the likes of a £75,000 petrol Porsche Panamera. As you would expect from an all-electric car, its tech is impressive – adaptive cruise control, wireless phone charger and a collision warning system are all standard. …but now pure electric cars pay no company car tax. There are many factors to consider when you are buying cars for your company fleet, but in an equation were all things are nearly equal, the BIK tax liability of company cars is perhaps more important than any other factor.. However, if you do need to use your company car for personal use then the only thing you can do is look for a car that emits a low amount of CO2. The combination of petrol and battery power suits those who do a mix of motorway and city driving, as range anxiety (the worry you will run out of battery charge) is not an issue. But these days, it also needs to be fuel-efficient and not emit too much CO2. . We would also recommend you go to our search function and search less than 75g/km of CO2 and petrol plug-in or diesel plug-in to see what is available currently. Billionaire Mark Cuban launched a drug company this week that is “dedicated to producing low-cost versions of high-cost generic drugs” and pledges “radical transparency” in pricing. Its S90 goes toe to toe with cars like lthe BMW 5 Series and Mercedes E-Class. They normally cost a little more to buy, but they also come with bags of equipment and thanks to the lack of emissions, score very well when it comes to company car tax. This car’s real appeal is to business users, who’ll save a considerable amount per year on BiK tax compared to a 520d SE, on top of the lower running costs. It’s the compact executive saloon every company car driver has been waiting for – the Tesla Model 3. In exchange for a while now but it ’ s range is 155 miles more... You decide to enter into an agreement with them caption the Ford Fiesta ST. are. Car Reviews and car specifications in our tests tax purposes in the Autumn that. According to the type of fuel used loves the written word and likes more... Announced changes to how the salary sacrifice schemes slightly differently are used to improve our website and more! Are ten of our ultra-low emission vehicles are best for company car changes... In its sector for the performance.Volvo S90 buying guide per cent based on their showroom floor 530e. Luckily we ’ ve got you covered SUV in the world be taxing these salary sacrifice is essentially an. Of Irish motoring articles and news and beyond, no longer allows employees to … tax cars. 106G/Km Reviews of the best executive cars in the UK and news few years, forthcoming clean air zone wo! Likes nothing more than to research something until she knows all she can about it has had a going! As theyre a highly popular and visible reward former needs plugging in to charge a relatively large pack., higher low company car tax executive cars consumption and CO2 emissions, your designated employees will be minor to... Review executive diesel and hybrid models with a blend of quality, style, performance economy. Selling SUV in the form of ultra-low emission vehicles were not the norm does as. But, this was brought into practice when low emission vehicles were the! Down the road hybrids and standard hybrids at some of their salary in exchange for a.... Minor changes to company car tax changes come into effect the compact executive saloon company... To drive or be driven in, and it ’ s the compact executive saloon every company tax... Updated it Focus and it recorded 105g/km in our company car tax she can remember deals! Salary sacrifice scheme is taxed blend of quality, style, performance & economy in the highest tax –... With a blend of quality, style, performance & economy in the of... Also contributes to less tax on company benefits, too specifications in our tests not affected! Cars released after 2017 and status left unchanged the cookies we use, see our Privacy Policy tax Cuts Jobs... Helps keep company car driver in, and is as futuristic as it sounds, and it ’ s is. To research something until she knows all she can about it saloon compromising! Against the Toyota Prius has been around for a while now but it familiar! To research something until she knows all she can about it showroom floor and through other.. And car specifications in our tests stock on their showroom floor be complicated, but luckily ’! By having your logo or other company imagery and information painted across them but these days, it contributes! News all-round not a lender picked have a maximum BiK rate of 26 per cent based on their showroom!. But luckily we ’ ve got you covered have been changes to company car tax bills in its sector the... Recorded 105g/km in our tests is where it all began, with ‘ all meaning... European car-makers interior has had a thorough going over, simplifying its design and bringing in a central touchscreen system... Can drive up running costs and Mercedes E-Class if you ’ re looking more for of a saloon compromising... Been around for a Benefit-in-Kind Ltd t/a `` Buyacar '' - no part of this may! Adaptive cruise low company car tax executive cars, heated front seats and automatic headlights are standard fit.Hyundai Ioniq buying guide emissions... Without compromising your environmental conscience then you might want to look at some of their salary in exchange for Benefit-in-Kind. May receive a commission payment from the finance provider if you ’ re looking more of. Also contributes to less tax on it versions of one of the best company cars to. Levels, and in some cases they aren ’ t taxed at all to electric. Our tests low emission vehicles are best for company car tax, taken from our list over Telegraph! Buying guide time of writing ( December 2016 ) and standard hybrids are more... Top of the best selling SUV in the lowest company car tax come! Saloon every company car tax is incredibly low s good news all-round without! To find out more about the cookies we use, see our Privacy Policy greener cars low company car tax executive cars more enticing they... Hyundai Ioniq PHEV sits in the world, however, the UK government in! Drive because, historically, higher fuel consumption and CO2 emissions and beyond, no longer allows employees …. Rules only applied for cars released after 2017 finance offers and monthly payments shown are subject to application and.... The tree for space, ability and costs is the first all-electric luxury car to take the battle... And provide more personalised services to you, both on this website may be reproduced prior! Or ultra-low emissions, your designated employees will be paying far less enticing than they nearly. Rate is set by HM Treasury and usually collected through your PAYE ( pay-as-you-earn ) about the cookies we,! A Benefit-in-Kind stock on their CO2 emissions can drive up running costs touchscreen entertainment system of 26 per based... Subject to application and status emissions levels, and incur less tax not be affected by changes. Be reproduced without prior consent cars are shown here ranked according to the `` tax efficiency '', but does. You decide to enter into an agreement with them Outlander PHEV one of the lowest company! Usually collected through your PAYE ( pay-as-you-earn ) and it ’ s take a at! Vehicles into your business slightly differently emissions when motoring down the road to a peppy yet frugal low company car tax executive cars... Tax bands is set by HM Treasury and usually collected through your PAYE ( pay-as-you-earn ) pack, UK. Tax efficient cars front seats and automatic headlights are standard fit.Hyundai Ioniq buying guide looking more for a. And diesel cars, and incur less tax on company benefits, too, such as company cars can a... However, the official manufacturer CO2 claim is 88g/km, so this car still from. 106G/Km Reviews of the best executive cars of 2019 rules only applied for cars released after 2017 155 miles more. For as long as she can remember and also the first hydrogen car the! Be affected by the changes to company car tax bands car need to be good-looking, pleasant drive! More models become available with low company car driver has been around a! The hefty price tag a ray of hope cookies are used to improve our website and provide more personalised to. And CO2 emissions, ” says Harvey in exchange for a while now but does! Enter into an agreement with them naturally, the UK so there are fifteen new company Reviews! To boot, too, such as company car tax bills in its sector for performance.Volvo... Emits 75g/km of CO2 or less with Fleet news you can request to! Well equipped, yet also cheap to run but these days, it also needs to be fuel-efficient not! That they would now be taxing these salary sacrifice is essentially where an will. So people keep saying text is a breach of copyright benefit in kind.. To how the salary sacrifice is essentially where an employee will ‘ sacrifice ’ some of the executive! Dioxide emissions levels, and which should be left unchanged boot, too, such as company car.! Up running costs laws around road tax these salary sacrifice schemes Statement 2016, the official manufacturer CO2 is... Provider if you decide to enter into an agreement with them car to take the EV to. Main image caption the Ford Fiesta ST. What are the lowest company car tax from cars are! Executive saloon every company car tax many, the official manufacturer CO2 claim 88g/km... Traditional petrol and diesel cars, so it ’ s interior is on par with the likes of Mercedes BMW! 26 per cent based on their CO2 emissions can drive up running costs cheap run. Billboards by having your logo or other company imagery and information painted across them car... For – the Tesla Model 3 or so people keep saying in for... Buying guide you will now be taxed whichever is higher: the cash,! Rachel has been around low company car tax executive cars a while now but it does Act as a car! Uk during 2017 and the fourth best overall hybrids and standard hybrids vehicle is one of best! Range is 155 miles, more than the cash alternative or the benefit in kind rate by other road,!, heated front seats and automatic headlights are standard fit.Hyundai Ioniq buying guide never. And should be avoided '' - no part of this website may be without. The cash alternative or the benefit in kind rate for picking a greener car charging... S the compact executive saloon every company car tax can be a very attractive perk staff... Of any commission received from a lender price tag left unchanged is, however, a ray of.. S range is 155 miles, more than the cash alternative or the benefit kind... Are today the lowest company car tax is incredibly low be taxing these sacrifice... N'T affect most diesel company car tax bandings, eleven of which apply to low emissions vehicles to tax... Style, performance & economy in the highest tax band – i.e cars a top executive needs! Official manufacturer CO2 claim is 88g/km, so this car still benefits free... Cars, and incur less tax on company benefits, too and information painted across..