Changing cars? Remember to check company car benefit rules

A restructuring of the 2012 company car benefit table means that those who have chosen low emission models could face a 50% tax rise compared to 2010/11 charges.

For example, a company car driver with a car emitting between 105g/km and120g/km will see tax rise from 10% of list price to 15% of list price as we move from 2011/12 to 2012/13 tax year.

This is a larger rise than other drivers, the remainder of whom will see a 1% of list price increase in their benefit in kind.

Drivers looking at changing a company car now should think carefully – the secret is to balance a low emissions rating with a modest list price.  Paying double for a car with emissions that are very low may not benefit the driver as the benefit may still end up larger.

Although the change to the benefit table 2012 is currently a ‘one off’, experts believe that increased duty on low emission models are likely to continue.

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