We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we will assume that you are happy to receive all cookies on the Business Car website. However, if you would like to, you can change your cookies at any time
The start point for the best source of fleet information |
From April any cars emitting below 121g/km of CO2 will be subject to a new 10% BIK charge. But that's not the only change business car managers can expect from the start of the new tax year, as Paul Barker reports
Business car benefit-in-kind tax bands are shifting on 6 April.
For the first time in three years, the CO2 emissions for each banding drop by 5g/km, which means the 15% tax band now comes down to 135g/km from 140.
But crucially there's also a new sub-121g/km banding that incurs just 10%. Although the 3% diesel penalty still applies, drivers jumping into any models that slot into the new band will see a hefty reduction in monthly BIK contribution.
A lower-rate tax payer running a three-door BMW 118d SE will now pay £20 less per month in tax, while a Ford Focus 1.6 TDCi Style will cost £14 per month less. And that's before the income tax change that drops the lower rate from 22% down to 20% from this financial year.
There's also good news for the tiny number of fleets running biofuels, as models using the fuel will now get a two-band BIK reduction.
April also brings changes to Vehicle Excise Duty, which sees cars between 101-120g/km stay at £35 per year while those emitting 120-150g/km rise by £5 to £120, or £100 for alternative-fuelled hybrids and LPG vehicles.
At the other end of the scale, the max 35% BIK band now covers anything over 234g/km, and the top VED band of G now means all models over 225g/km will be hit by a £100 increase in VED, taking it to £400 per year.
. For all Budget news on 12 March go to BusinessCar.co.uk/Budget2008
BusinessCar magazine ©2019
Business Car Magazine © 2020 | Business Car is part of NS Media Group.
