Company Cars

There is a lot of talk these days about going green, carbon footprints etc. As a small business you’d be forgiven for thinking that the tax breaks to encourage “greener” living are just for the likes of ICI and other large industrial companies, but the Revenue have introduced a generous scheme to encourage small business owners to do more for the environment.

The scheme concerns Company cars. Historically providing a company car to an employee has been very expensive from a tax point of view but no longer – at least for certain cars. Those cars which have CO2 emissions of not more than 110g per kilometre driven qualify for 100% allowances within the Company – this means that if the car costs £20,000 you can offset the whole amount against your Company profits in year 1. Previously this would have been spread over at least 4 years.

The benefit in kind charge (the tax payable by the employee) is also reduced to 10% of the list price of the car for cars with a CO2 emission rate of 120g/km or less (as of 6 April 2008). This lower rate is increased to 13% for diesel cars due to a 3% diesel supplement. The benefit in kind charge for electric-only cars is calculated at 9% of the list price.

How then does this relate to actual tax savings? Take the example of a Toyota Prius with a list price of £20,000 and a CO2 emission rate of 104g/km. In year one the Company can write off the whole cost of the car against its profits, meaning a tax saving of £20,000 x 20% i.e. £4000.

The benefit in kind on the employee would be £20,000 x 10% = £2,000. This would cost a Higher Rate tax payer £800 in tax with the Company paying an extra £256 a year in Class 1a National Insurance.

This then is a tax saving in year 1 of £2,944. Remember as well that the Company will pay for all the repairs, tax, business fuel and insurance on the car, reclaiming VAT where applicable and obtaining corporation tax savings on all costs.

So, the tax breaks are good, but are the cars that qualify worth the extra savings? Personal choice of course, but below are the ones that are currently available, and you may want to check out www.green-car-guide.com for more details.

Make Model Version
REVA G-Wiz DC electric car Auto
REVA G-Wiz AC electric car Auto
SAKURA Maranello Maranello4 Electric
AIXAM Nice Nice
TOYOTA Prius 1.5 T Spirit
TOYOTA Prius 1.5 T3
TOYOTA Prius 1.5 T4
CITROEN C1 1.0i Airplay 5 door
TOYOTA Aygo 1.0 VVTi Black 5-door
CITROEN C1 1.0i Vibe 3 door
TOYOTA Aygo 1.0 VVTi Black 5-door MMT
CITROEN C1 1.0i Vibe 5 door
TOYOTA Aygo 1.0 VVTi Blue 3-door
TOYOTA Aygo 1.0 VVTi Blue 3-door MMT
TOYOTA Aygo 1.0 VVTi Blue 5-door
TOYOTA Aygo 1.0 VVTi Blue 5-door MMT
HONDA Civic Hybrid 1.4 IMA ES CVT 4dr
PEUGEOT 107 1.0 Urban lite 3dr
PEUGEOT 107 1.0 Urban 3dr
PEUGEOT 107 1.0 Urban Move 3dr
PEUGEOT 107 1.0 Urban 3dr auto
TOYOTA Aygo 1.0 VVTi + 3-door
PEUGEOT 107 1.0 Urban 5dr
TOYOTA Aygo 1.0 VVTi + 3-door MMT
PEUGEOT 107 1.0 Urban Move 5dr
TOYOTA Aygo 1.4 D-4D + 3-door
PEUGEOT 107 1.0 Urban 5dr auto
TOYOTA Aygo 1.0 VVTi + 5-door
PEUGEOT 107 1.0 Sport XS 3dr
TOYOTA Aygo 1.0 VVTi + 5-door MMT
TOYOTA Aygo 1.4 D-4D + 5-door
CITROEN C1 1.0i Rhythm 3 door
TOYOTA Aygo 1.0 VVTi 3-door
CITROEN C1 1.0i Rhythm 5 door
TOYOTA Aygo 1.0 VVTi 5-door
CITROEN C1 1.4HDi 55 Rhythm 5 door
TOYOTA Aygo 1.0 VVTi Black 3-door
CITROEN C1 1.0i Airplay 3 door
TOYOTA Aygo 1.0 VVTi Black 3-door MMT
SMART fortwo cabrio 0.7 Pulse
SMART fortwo cabrio 0.7 Pure
CITROEN C2 1.4 HDi L
CITROEN C2 1.4 HDi Design
CITROEN C2 1.4 HDi Furio
SMART fortwo coupe 0.7 Pulse
CITROEN C2 1.4 HDi SX
SMART fortwo coupe 0.7 Pure
SMART fortwo coupe 0.7 Pure 50bhp
DAIHATSU Charade 1.0 3-door
DAIHATSU Charade 1.0 5-door
FIAT Panda 1.3 16v Multijet Dynamic
CITROEN C3 1.4HDi L
CITROEN C3 1.4HDi Desire
SMART fortwo cabrio 0.7 Pulse with Softouch
SMART fortwo cabrio 0.7 Pure with Softouch
SMART fortwo coupe 0.7 Passion Softouch
PEUGEOT 206 3 Door 1.4 HDi 70 Look
SMART fortwo coupe 0.7 Pulse with Softouch
PEUGEOT 206 5 Door 1.4 HDi 70 Look
SMART fortwo coupe 0.7 Pure 50bhp with Softouch
SMART fortwo coupe 0.7 Pure with Softouch
FORD Fiesta 3dr 1.6 Duratorq TDCi Zetec Climate
FORD Fiesta 3dr 1.6 Duratorq TDCi Zetec S
FORD Fiesta 5dr 1.6 Duratorq TDCi Ghia
FORD Fiesta 5dr 1.6 Duratorq TDCi Zetec Climate
SMART forfour 1.5 cdi Passion 68bhp
SMART forfour 1.5 cdi Pulse 68bhp
SMART fortwo cabrio 0.7 Passion Softouch
RENAULT Clio III 1.5 DCi Expression 86 3-dr
RENAULT Clio III 1.5 DCi Dynamique 86 3-dr
RENAULT Clio III 1.5 DCi Dynamique S 86 3-dr
RENAULT Clio III 1.5 DCi Expression 86 5-dr
RENAULT Clio III 1.5 DCi Privilege 86 5-dr
RENAULT Clio III 1.5 DCi Dynamique 86 5-dr
HYUNDAI Getz 1.5 CRTD GSi 5-dr
MINI Cooper New 1.6 D
CITROEN C3 1.6HDi 16V 92bhp SX
CITROEN C3 1.6HDi 16V 92bhp Exclusive
RENAULT Clio III 1.5 DCi Expression 86 Quickshift5 3-dr
RENAULT Clio III 1.5 DCi Expression 86 Quickshift5 5-dr
DAIHATSU Sirion 1.0 S
DAIHATSU Sirion 1.0 SE
FIAT Grande Punto 3 door 1.3 16v Multijet 75 Active Aircon
TOYOTA Yaris 1.4 D-4D T3 5-door
FORD Fusion 1.4TDCi Duratorq Style Climate
FIAT Grande Punto 5 door 1.3 16v Multijet 75 Active
TOYOTA Yaris 1.4 D-4D T3 5-door MMT
FORD Fusion 1.4TDCi Duratorq Pursuit
FIAT Grande Punto 5 door 1.3 16v Multijet 75 Active Aircon
TOYOTA Yaris 1.4 D-4D Zinc 3-door
FORD Fusion 1.4TDCi Duratorq Pursuit Climate
FIAT Grande Punto 3 door 1.3 16v Multijet 75 Dynamic
TOYOTA Yaris 1.4 D-4D Zinc 3-door MMT
FORD Fusion 1.4TDCi Duratorq Zetec Climate
FIAT Grande Punto 5 door 1.3 16v Multijet 75 Dynamic
TOYOTA Yaris 1.4 D-4D Zinc 5-door
FORD Fusion 1.6TDCi Duratorq Zetec Climate
FORD Fiesta 3dr 1.4i Duratorq TDCi Studio
RENAULT Modus 1.5 DCi 86 Dynamique Auto
TOYOTA Yaris 1.4 D-4D Zinc 5-door MMT
FORD Fiesta 3dr 1.4i Duratorq TDCi Freedom
RENAULT Modus 1.5 DCi 86 Expression Auto
TOYOTA Yaris 1.4 D-4D TR 3-door
FORD Fiesta 3dr 1.4i Duratorq TDCi Style
RENAULT Modus 1.5 DCi 86 Initiale Auto
TOYOTA Yaris 1.4 D-4D TR 3-door MMT
FORD Fiesta 3dr 1.4i Duratorq TDCi Style Climate
RENAULT Modus 1.5 DCi 86 Privilege Auto
TOYOTA Yaris 1.4 D-4D TR 5-door
FORD Fiesta 3dr 1.4i Duratorq TDCi Silver
TOYOTA Yaris 1.4 D-4D TR 5-door MMT
TOYOTA Yaris 1.4 D-4D SR 3-door
FORD Fiesta 3dr 1.4i Duratorq TDCi Zetec Climate
VAUXHALL Corsa 3-door 1.3CDTi 16v Club CO2RSA 75PS
TOYOTA Yaris 1.4 D-4D SR 3-door MMT
VAUXHALL Corsa 3-door 1.3CDTi 16v Club CO2RSA 75PS (a/c)
TOYOTA Yaris 1.4 D-4D SR 5-door
VAUXHALL Corsa 3-door 1.3CDTi 16v Life CO2RSA 75PS
TOYOTA Yaris 1.4 D-4D SR 5-door MMT
FORD Fiesta 5dr 1.4i Duratorq TDCi Ghia
VAUXHALL Corsa 3-door 1.3CDTi 16v Life CO2RSA 75PS (a/c)
TOYOTA Yaris 1.4 D-4D T Spirit 3-door
VAUXHALL Corsa 5-door 1.3CDTi 16v Club CO2RSA 75PS
TOYOTA Yaris 1.4 D-4D T Spirit 3-door MMT
FORD Fiesta 5dr 1.4i Duratorq TDCi Style
VAUXHALL Corsa 5-door 1.3CDTi 16v Club CO2RSA 75PS (a/c)
TOYOTA Yaris 1.4 D-4D T Spirit 5-door
FORD Fiesta 5dr 1.4i Duratorq TDCi Style Climate
VAUXHALL Corsa 5-door 1.3CDTi 16v Life CO2RSA 75PS
TOYOTA Yaris 1.4 D-4D T Spirit 5-door MMT
FORD Fiesta 5dr 1.4i Duratorq TDCi Zetec Climate
VAUXHALL Corsa 5-door 1.3CDTi 16v Life CO2RSA 75PS (a/c)
TOYOTA Yaris 1.4 D-4D T2 3-door
VOLKSWAGEN Polo 1.4 TDi S 70PS 3 door
TOYOTA Yaris 1.4 D-4D T2 5-door
FORD Fusion 1.4TDCi Duratorq Plus
VOLKSWAGEN Polo 1.4 TDi S 70PS 5 door
TOYOTA Yaris 1.4 D-4D T3 3-door
FORD Fusion 1.6TDCi Duratorq Plus
VOLKSWAGEN Polo 1.4 TDi SE 80PS 3 door
FIAT Grande Punto 3 door 1.3 16v Multijet 75 Active
TOYOTA Yaris 1.4 D-4D T3 3-door MMT
FORD Fusion 1.4TDCi Duratorq Style
VOLKSWAGEN Polo 1.4 TDi SE 80PS 5 door
RENAULT Megane Hatch 1.5 DCi 86 Extreme
PEUGEOT 207 5 Door 1.4 HDi S 70
RENAULT Megane Hatch 1.5 DCi 106 Privilege 6 speed
PEUGEOT 207 5 Door 1.4 HDi S 70 with AC
RENAULT Megane Sport Hatch 1.5 DCi 106 Dynamique 6 speed
PEUGEOT 207 5 Door 1.6 HDi S 200 with AC
RENAULT Megane Sport Hatch 1.5 DCi 86 Dynamique
PEUGEOT 207 5 Door 1.6 HDi SE Premium 200
RENAULT Megane Sport Hatch 1.5 DCi 86 Extreme
PEUGEOT 207 5 Door 1.6 HDi Sport 200
PEUGEOT 207 5 Door 1.4 HDi Urban 70
RENAULT Modus 1.5 DCi 86 Dynamique
RENAULT Modus 1.5 DCi 86 Expression
RENAULT Modus 1.5 DCi 86 Initiale
CITROEN C3 1.6HDi 16V 110bhp VTR
RENAULT Modus 1.5 DCi 86 Privilege
CITROEN C4 Coupe 1.6HDi 16V 110bhp VTR+ EGS
CITROEN C4 Hatch 1.6HDi 16V 110bhp SX EGS
CITROEN C4 Hatch 1.6HDi 16V 110bhp VTR+ EGS
SKODA Fabia New 1.4 TDI PD Fabia 1 80bhp
RENAULT Megane Hatch 1.5 DCi 86 Authentique
PEUGEOT 207 3 Door 1.4 HDi S 70
SKODA Fabia New 1.4 TDI PD Fabia 2 80bhp
RENAULT Megane Hatch 1.5 DCi 106 Dynamique 6 speed
PEUGEOT 207 3 Door 1.4 HDi S 70 with AC
SKODA Fabia New 1.4 TDI PD Fabia 3 80bhp
RENAULT Megane Hatch 1.5 DCi 86 Dynamique
PEUGEOT 207 3 Door 1.6 HDi S 200 with AC
RENAULT Megane Hatch 1.5 DCi 106 Expression 6 speed
PEUGEOT 207 3 Door 1.6 HDi Sport 200
RENAULT Megane Hatch 1.5 DCi 86 Expression
PEUGEOT 207 3 Door 1.4 HDi Urban 70
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