Tax On Company Cars

The company car tax rules changed in 2002 which means the car you run today will be assessed in the following manner – Your company car is currently taxed on the amount of exhaust emissions which it produces, not the purchase price as in the past. The cleaner the emissions the less you pay.

It works like this – the base tax is calculated at 15% of the cars list price and rises 1% (for every 5 grams of C02) as the emissions rise from a base line of 165 grams of carbon dioxide per kilometre up to a maximum of 35% – the best “ superminis “and town cars fall below this level.

Cars fitted with diesel engines are loaded by an extra 3% due to the higher emissions.

The 165gram base line will be lowered each year, with the result that every car will automatically fall into a higher tax bracket the following year.

In 2002 the way in which vehicle excise duty was charged also changed –
Cars registered before March 1st 2001 are now rated at £155 per annum, with cars under 1.5 ltr getting a lower figure of £100. Cars bought after March 2001 changed to a new system again based on the level of exhaust emissions with a reduction for cars which pollute less. Like the company car taxation system diesel engined cars are penalized.

The above information has been compiled by R-TS vehicle management.
To the best of our knowledge the information is a true reflection of the present government changes in car taxation as at 19th April 2001.

If your vehicle is due to be changed, contact R-TS for a quote.
We can advise on the most cost effective funding method for YOU.

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Which is most cost effective method of funding a car for YOU?

	Contract Hire
	Finance lease
	Hire purchase
	Personal contract purchase
	Lease Purchase
	Gap Insurance
	RTI (return to invoice)

Please click here to find out more: FUNDING METHODS