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 MGMakes Sense
Choose MGfor your company car and you'll enjoy high levels of specification, impressive fuel efficiency and emission reducing technologies. Not only does our range have something for everyone, but will also have flexible finance options that will work for you, whether you are self-financing or funded by your company.
At Read MGwe can get you on the road in just 4 simple steps:
What are the Benefits of Choosing MG?
Driving an MGfor your business not only gives you access to our full range of award-winning vehicles, but you'll also enjoy benefits including:
Why C02 Makes A Difference
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 MG'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.