Changing Car Soon?
Friday 08 January 2010 | By Nige O'SheaBack to Blog
A happy New Year to one and all, and thank you for all your questions, which are keeping me busy!
So...now that Christmas is over, more updates from the Chancellor's recent Pre-Budget Statement: Are you changing your company car soon? Maybe thinking about being green and protecting your pocket? If so, you should choose a car that is in the 135 to 139 g/co2 bracket, as this means that your taxable benefit will be 15% of the P11d figure. Well, it will be this year; however, this rate will rise by 1% each year for the next three years so, if your employer is one of those who typically keeps their cars for three years, after three years your taxable benefit will be 18% of the P11d price - even though it will still be the exact same car in three years' time.
This of course is a double whammy on your fuel charge (if you get fuel for private use), because not only is the charge increasing from £16,900 to £18,000; but the percentage charge of that amount is also rising as mentioned above. Considering a commercial such as a Nissan Navara Acenta Double Cab Pick Up could therefore seriously increase your wealth by allowing you to pay less in income tax.
...And whilst we know that the tax on company cars is going to rise continually over the next three years, we don't yet know the position on commercial vehicles. The situation at present is that the annual taxable charge is £3,000 and, as far as we know, there are no planned increases. Watch this space for updates!
If you have any questions about how any of these issues will affect you personally, email me and I will endeavour to answer your question as fully as possible. I look forward to hearing from you...
Read also
Tax benefits of a Truck
Wednesday 31 March 2010
Contract Purchase Benefits
Thursday 04 February 2010
Contract Hire Explained
Wednesday 27 January 2010
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