Company Car Tax - What You Need To Know
A key element to consider when choosing a company car is the amount of tax it'll incur. You will pay tax on a percentage of the P11D value of the car. The benefit in kind (BIK) rate is worked out by the amount of CO2 emissions the car produces. The lower the emissions, the lower the percentage.
The amount you pay will then be 20% of this figure if you're a lower rate tax payer, 40% if you're a higher rate payer and 50% if you earn over £150,000.
Why Hyundai Makes Sense
Choose Hyundai for your company car and you'll enjoy high levels of specification, impressive fuel efficiency and emission reducing technologies. The greener your car, the lower the CO2 emissions meaning you'll pay less tax.
How to Work out Your Company Car Tax
The Benefit in Kind rate is the percentage of the car's value you can be taxed on and it's based on the CO2 emissions of the car. That’s why Hyundai's range of low emission cars cost you less in tax. Here's how it works:
P11D Price x BIK Rate x Personal Tax Band = Annual tax you will need to pay. HMRC will advise you how this deduction will be made.
To find out more about Company Cars please complete the form below: