Mon-Fri 9:00am-5:30pm
01270 617540
Advanced Search

Car Leasing Companies

Car Leasing Companies

Require a company car lease?

Company car tax and how much it will cost is important when you decide whether to take a company car or to opt out and take a car allowance and go for "personal contract hire". Following is some information to help you decide.

Company car tax is derived from a (Benefit in Kind) BIK tax, imposed by HMRC and is calculated as a percentage of the P11d value of your car (this is the full retail, non-discounted price inc. extras). The percentage is determined by the emissions of the car allocated. An employee earning £45,000 per year or less will have to pay 20% of this amount in tax and those earning over that amount will pay 40%. If you earn over £150,000 each year you will pay 45%. This is normally deducted in the PAYE tax you pay each month from your salary.

Manufacturers are continuing to develop "super low" CO2 engines which are environmentally friendly. Hybrid cars currently conform to the same tax rules as petrol cars. This means they sit in lower bands, so you'll pay less tax for these.

Light commercial vehicles, including double-cab pick-up trucks with payloads in excess of 1000kg, are classed as a benefit in kind if they are also provided for private use. Unlike cars, use of commercial vehicles provided by an employer is levied at a flat rate.

You are also liable for extra tax if you get free fuel for private use.