New Forest

13/09/2017

Changing your company car? What about a Hybrid next?

From 2020 there will be a 2% benefit in kind for company cars that emit no CO2 such as electric and hydrogen powered cars. At the same time the system for taxing hybrid company cars will also be significantly changed. For example a hybrid car emitting less than 50g CO2 per kilometer will also have a 2% P11d benefit provided it has a range on its electric motor of at least 130 miles.

For example a BMW i3 hybrid costing £30,980 has a range of 181 miles so will qualify for the 2% benefit rate resulting in a taxable benefit of just £620 a year. Such a vehicle would also qualify for a 100% first year allowance which means that the £30,980 cost of the company car would be deducted in full against business profits.

For further information on the tax implications of changing your company car, please contact Alan Rolfe on 023 8046 1200.

Latest Tweets

The 130% super-deduction for equipment runs for one more year for companies that invest in new plant and machinery when the expenditure is incurred between 1 April 2021 and 31 March 2023.

Click the link to read more 👉 https://bit.ly/3lnq7B8

If you need help with submitting forms P11D and P11D(b) online, HMRC have a free webinar about how to send the forms using HMRC's PAYE online service.

Click the link to register and watch the recorded webinar 👉 https://bit.ly/3yH1fw4

Let’s Talk

Why not arrange a FREE consultation and find out what we can do for your business.