Is this diesel car Euro 6d ?
The Euro 6d standard is given to vehicles meeting RDE2 standard for NOx emissions, amongst other requirements. Beware that Euro 6d-TEMP is a less strict standard requiring conformity with RDE1. Many have been confused by these similar terms. To get the tax advantages of 6d, the standard must be the pure and simple 6d.
Has the government decided on how cars registered after 5th April 2020 will be taxed ?
Since the autumn of 2019 when the usual Finance Act did not happen, drivers have been unclear as to how new vehicles (with WLTP CO2 figures) will be taxed if registered after 5th April 2020. Although we can't be 100% certain, it is becoming clear that previous announcements will be confirmed in the Budget of 11th March 2020 and put into legislation sometime after the new tax year, but to apply retrospectively from 6.4.20.
Fully electric vehicles will then benefit from 0% tax in 20/21, 1% appropriate percentage in 21/22 and 2% in 22/23 and this will also apply to vehicles registered prior to 6.4.20.
We know that WLTP based CO2 figures will be used anyway, but the new legislation will provide a 2% and then 1% reduction to provide some alleviation of the tax increase due to higher tested CO2 figures.
The above approach is laid out on the HMRC website, and in the working assumptions for HM Treasury.
With electric cars that get the Plug-in car grant, does a company car driver pay the tax on the whole car before the government subsidy is applied?
Yes. The company car tax calculation is based on the entire vehicle cost, not the discounted amount. The P11d value is the full list price, before reduction by the grant to the actual amount paid by the buyer.
How is the taxable benefit calculated on a company car?
Take the official on-the-road list price of the car including options, deduct the VED and First Registration Fee (£55) included, and multiply by the official CO2 percentage for that vehicle. This is determined by reference to the level of CO2 emitted in grammes per kilometre shown on the V5 or Certificate of Conformity. Use the NEDC value up to 5th April 2020, and the WLTP value if the car is registered after. The CO2 value on registration stays with the vehicle, and is not changed by subsequent changes to tax rules.
Why do you have Kombi vans listed as cars for company car tax purposes?
Each vehicle is looked at on an individual basis. Generally though, if you think the vehicle you're interested in should be taxed as a van but is listed as a car, it's probably because it has more than 3 seats or looks like it has been made for the primary purpose of carrying passengers.
If in your chosen vehicle there are comfy seats in the back and/or a window for passengers to look out of, the tax man will clasify the vehicle as a car for company car tax purposes.
Beware that the rules for VAT and vehicle classification are different, so if the salesman assures you that it is a "van" he/she may be correct for VAT purposes, but incorrect for BIK.
Where can I find the list price of an old car?
You can find the list price of an old car using our older car calculator underneath the new car selector here.
Which tax rate applies to me ?
The value of the car benefit (BIK) is added to your earnings and will be taxed at the marginal rate. So those with a low salary will be taxed at 20% and higher earners will be taxed at 40%. If the BIK takes earnings over the 40% threshold, then part will be taxed at 20% and part at 40%.
Also beware that the BIK value of the car is added to income when assessing Child Benefit. This could take drivers over the crucial £50,000 threshold.
If you are a Scottish taxpayer, look for the appropriate selection button on the "View effect on net pay" option.
I cannot find the car details that are needed to fill in a P46. It was first registered a few months/years ago. Where can I find the information?
Go to the Company car tax calculator, and look for the module entitled Older Cars. This will help, but you will still need to know the full details of the car and date of registration. The original invoice and V5 will help you track it down, and guide you towards the original list price, cost of options and CO2 percentage.
Is company car tax reduced for older cars?
No. The calculation is always based on the list price at the time of registration. Therefore discounts or the second-hand sale price are not taken into account.
Will I be taxed on a hire car?
Yes. Any car provided by your employer and which is available for private use will give rise to a tax charge for the period of hire.