New Forest Ribbon
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

Even though it is still unclear, the UK will leave the EU at 11pm on 31 December 2020 and businesses need to be ready for changes in the way they trade with the EU http://ow.ly/76V450BR8Ze

It's been reported that ministers are considering halting plans to implement the planned national living wage (NLW) increase next Spring, as a result of the pandemic http://ow.ly/fEX450BR8Ge

Let’s Talk

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