EDITOR’S NOTE: An updated Company Car Tax download for 2011 is now available. You can download it here: Company car tax: how Budget 2011 affects you.
FROM the start of the 2010 tax year, company car tax increased for most business car drivers.
The CO2 bandings, which define the percentage charge of benefit-in-kind taxation, have been moved down a notch and will continue to move downwards in 5g/km steps over the next two tax years.
In addition, the current lowest 10% band for business cars with 120g/km emissions or less (13% for diesel business cars) is changed in 2012; qualifying cars for the 10% band will now be required to have emissions of 99g/km. The effect is to give those drivers with 120g/km cars a five band tax rise.
Businesses that run private cars and charge business mileage to their firms have seen no change in AMAPs (Approved Mileage Allowance Payments), which remain at 40p per mile.
“To help you understand these changes more fully – and the rest of the taxation changes announced in the Budget 2010 – we have produced a special download so you can pinpoint how the changes affect your business motoring, and your pocket,” said Business Car Manager editor, Ralph Morton.
“But whether you drive a company car or a private car, one thing is very clear: the lower the CO2 emissions, the less tax you will pay, whether that’s benefit-in-kind, road tax, or the crippling fuel duty,” Mr Morton added.
To download are free guide as a pdf, click on the highlighted link:Company Car Tax – How Budget 2010 Affects You
How Budget 2010 affects you
