Company car tax

sunrise27_2

Not sure if this is in the right place ?
My husband gets a company car a Jaguar XF 2.2D ( 163 ) luxury he got it in October 2015 , when choosing the car he said it was in the 21% tax band ( he pays his own petrol for personal use ) but we've just had his new tax code in and It works out we will be paying more tax than we originally thought , have the company car tax bands changed ?

Darksparkle

Do you mean the percentage used to determine the car benefit? That's not a tax band, that's the % of the list price based on the cars Co2/fuel type.

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/496886/TC2b.pdf

The tax that is actually due depends on total taxable income.

sillygoose

Yes, the government are increasing the percentage of the Benefit in Kind (BIK) value you will be taxed on year on year, in fact you will see the tax you pay on it rise considerably annually over the next few years.

Also the tax can rise for other reason, if his salary and other benefits are close to higher rate tax level, then if his earnings increase more of it will be taxed at higher rate, but I am guessing by the car he is already quite into the higher band anyway.

Sadly drivers are being milked for revenue under the great eco con as usual, the only way to limit the damage to your finances is to get a lower value car so the BIK is lower and/or a low emission car, this is why so many company car drivers are switching to hybrids for the low official CO2 ratings.

https://www.theaa.com/resources/Documents/pdf/motoring-advice/table-of-co-car-tax-bik-2014on.pdf

sunrise27_2

Ok maybe that's what I mean lol don't really understand it all , so looking at that form and some others I've just found that does mean that the percentage is going to rise again over the next few years ?

sunrise27_2

And I'm thinking that because it's a diesel car we have to add 3% on to percentages quoted for petrol cars ? Next time he can have a push bike lol

sillygoose

sunrise27 wrote: »

Ok maybe that's what I mean lol don't really understand it all , so looking at that form and some others I've just found that does mean that the percentage is going to rise again over the next few years ?

The table I linked to already includes the 3% under the column for diesel.
You just need to know what the official CO2 value is for his car, for that year model and the official list price of the car (the BIK value)

You find the right percentage for the tax year in the table (say 21%), apply it to the BIK (say £30,000) and that will give you a value, in my example £6300.

You would then be taxed on £6300 as if you had been paid that in cash with your other salary.

sunrise27_2

Now you've lost me lol I know it's 129 CO2 emissions will find out the list price then I may get back to you �� If I can't work it out

sunrise27_2

I have read that the government were going to scrap having to add the 3% on for diesel cars for this year ( or maybe next year ? ) but now that's not the case , so does that mean the chart you linked to isn't right now ?

sillygoose

sunrise27 wrote: »

Now you've lost me lol I know it's 129 CO2 emissions will find out the list price then I may get back to you �� If I can't work it out

He should have been told the list price (the BIK value) when he was supplied the vehicle on paperwork or when getting quotes

sillygoose

sunrise27 wrote: »

I have read that the government were going to scrap having to add the 3% on for diesel cars for this year ( or maybe next year ? ) but now that's not the case , so does that mean the chart you linked to isn't right now ?

yes put back from 2016 to 2021! after many bought diesels expecting it to drop. Utter mugging!

This table is more up to date and straight forward..

http://www.nextgreencar.com/company-car-tax/bik-rates/#q1

sunrise27_2

What a pain in the a*** , I better re juggle our finances to allow for the next few years tax rises ��