Tax buster Skoda Octavia prices: get a 1.6 TDI and pay £45 a month in company car tax

SKODA has announced prices and specifications for its all-new Octavia ahead of the first customer deliveries in March.

Built on the versatile VW Group MQB chassis, the revised Octavia is based on the same platform as the all-new Audi A3, class-leading Mk7 VW Golf and upcoming SEAT Leon.

Pick of the range for company car drivers will be the economical 1.6 TDI, which packs 105PS, standard start-stop and a slick five-speed manual transmission. This makes the Octavia good for 74.3mpg, while emitting just 99g/km of CO₂ – giving it a company car tax band of 14% for the 2013/14 tax year.

The result of such a frugal powerplant means a benefit in kind tax of just £2,686. Company car drivers taxed at 20% will pay £537 per year (for 40% taxpayers that’s £1,074) making the Octavia 1.6 TDI one of the best value company cars on the market.

Along with the clean 1.6 TDI, there is also the option of a 1.2 or 1.4-litre TSI turbo petrol or a powerful 2.0-litre TDI diesel. Skoda also announced a company car-friendly Greenline model will join the line-up towards the end of the year, with 89g/km emissions and claimed 83mpg economy.

Prices start at £15,990 for the petrol 1.2, with the entry-level 1.6 TDI kicking off at £18,040. Three trims – S, SE and Elegance – will be offered, with all cars getting 16-inch alloy wheels, Bluetooth and a DAB radio as standard.

Mid-range SE cars gain electronic stability control, front fog lights, automatic air conditioning and body coloured trim for just £1,200 more.

Flagship Elegance models are arguably the best value, though, adding kit like alcantara and leather trim, sat-nav and cruise control for only £1,850 more than the SE.