Confused about company car tax

No1Alicat

Hi all

I took a company car 3 years ago. I was asked to select a car within a certain budget, and chose a one-year old estate rather than a smaller, brand new car. (I wanted to make sure I could get all my camping stuff in it!)

The car is now 4 years old and has over 100K miles on the clock.

Can someone please tell me:

Is it right that I am being taxed on the original list price of the car when new, not the selling price when the company bought it as a 1 year old car?

And is it right that I should be paying the same amount of tax now on a 4 year old, high mileage vehicle than I did when it had 13K on the clock and was just 1 year old?

I don't want to change it, as I'm quite fond of the old thing. I also don't want (at the moment) to take a salary rise and lose the car. I'd just like to be paying less tax. (But then I guess, wouldn't we all!!)

Thanks for any help!
Alison
x

ctm_2

The age of the car, and the mileage has no effect on the taxable benefit of the vehicle.

You may find that a newer car might cost you less, as the taxable benefit is calculated using the list price, the co2 emissions and fuel type, so if a newer car of similar value is greener, it could cost you less.