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Company Car Changes

Mercia Blog TTYC Company Car Changes July 2017

There are significant rises ahead for company car drivers. The upside of these changes is that we know they are coming and so new purchases of vehicles can take account of them.

From April 2017

For 2017/18, the appropriate percentages of the list price subject to tax for the 0-50gm/km band is 9% and 13% for the 51-75gm/km band. The rate is 17% for cars with CO2 emissions of between 76-94 gm/km, 18% for 95-99gm/km, etc. up to the maximum of 37%. To summarise, from 6 April 2017 the rules are:

  • 0-50gm/km* – 9%;
  • 51-75gm/km* – 13%;
  • 76-94gm/km* – 17%;
  • 95-99gm/km – 18%;
  • graduated increases of 1% per 5gm/km up to a maximum, including the diesel supplement, of 37%.

NB: Where the emissions do not end in a 5 or 0, round down to the nearest 5 or 0 but not in the ranges marked with a *.

April 2018 onwards

In 2018/19, the appropriate percentages of the list price subject to tax for the 0-50gm/km band will be 13% and 16% for the 51-75gm/km band. The rate will be 19% for cars with CO2 emissions of between 76-94 gm/km, 20% for 95-99gm/km, etc. up to 37%.

April 2019 onwards

In 2019/20, the appropriate percentages of the list price subject to tax for the 0-50gm/km band will be 16% and 19% for the 51-75gm/km band. The rate will be 22% for cars with CO2 emissions of between 76-94 gm/km, 23% for 95-99gm/km, etc. up to 37%.

April 2020 onwards

In 2020/21 a new range of low-emission percentages will apply.

Car emissions gm/km %
0 2
1-50

Electric range of 130 or more

Electric range of 70-129 or more

Electric range of 40-69 or more

Electric range of 30-39 or more

Electric range of less than 30

 

2

5

8

12

14

51-54 15
55-59 16
60-64 17
65-69 18
70-74 19

The appropriate percentage for a year for a car with a CO2 emissions figure of 75 or more is whichever is the lesser of:

  • 20% plus one percentage point for each 5gm/km by which the CO2 emissions figure exceeds 75; and
  • 37%.

‘Electric range’ is the number of miles which is the equivalent of the number of kilometres specified in an EC certificate of conformity, an EC type-approval certificate or a UK approval certificate on the basis of which a car is registered, as being the maximum distance for which the car can be driven in electric mode without recharging the battery.

Written by Mark Morton

Mark Morton

Mark joined HMRC in 1989 and undertook their full training exams. In 1996 he was made Deputy District Inspector for the Derby area and had detailed experience of all types of Revenue enquiries.

Mark joined Mercia as an experienced lecturer and now provides a wide variety of CPD training around the country. He is also a well known contributor to professional publications and provides technical consultancy to the accountancy profession.

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