Does the tax on a company car go down with it's age?

tfcmagpie

I have a 4 year old company car, nothing wrong with it at all. However as it is a benefit and others in the same position as me have cars which are changed every three years (leased, mine is owned by the comapny) I need to know if I am worse off than them? IE does the tax reduce every year?

getmore4less

blondebubbles wrote: »

The company car benefit charge is based on the list price of the car, it's CO2 emissions, fuel type etc.

So could be worse off as CO2 tends to improve over time although list does go up.

zygurat789

tfcmagpie wrote: »

I have a 4 year old company car, nothing wrong with it at all. However as it is a benefit and others in the same position as me have cars which are changed every three years (leased, mine is owned by the comapny) I need to know if I am worse off than them? IE does the tax reduce every year?

Your benefit in kind is calculated by reference to your car's list price the day before it was first registered, which will not change, and its CO2 emissions, these won't change BUT the percentage applied to the list price does tend to increase annually in the budget so your BiK will increase over the years.
This increase may push you into the 40% tax bracket, which may be avoided by a cheaper, more efficient car.
So I'm afraid the annual tax you have paid on that car has increased over the years.

System

So if you chose a classic car next time it might only be based on the original £1000 list price?