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Best corporate car 2022: The Complete Guide


The company car market has seen a lot of changes over the past few years, especially with the onset of electrification. The government is pushing motorists to reduce carbon emissions and rewarding business users for acting green with a more favorable corporate car tax rate for electric and hybrid vehicles (PHEVs).

As more and more electric vehicles hit the market, it’s important to know exactly what you’ll be paying as a business user. That’s why we bring you our company’s best car picks from six price brackets – and, with tax benefits and with more electric cars offering a real range of uses. Indeed, you will find a lot of EVs in our main listing.

Of course, this does not mean that pure petrol or diesel cars should be ignored, because optimizing efficiency means that many new models still become great company cars. It’s just that they don’t sit in the same attractive tax bands as before.

Plug-in hybrids also benefit from tax rule changes, with BiK rates here based on a sliding scale depending on how many miles a PHEV could include electricity, assuming they emit between 1-50g/km CO2. These levels range from 1% if the vehicle can go more than 130 miles on a single charge (though there are no cars in this category yet), to 13% if the vehicle has a zero-emissions range of less than 30 miles.

What is BiK and what will I have to pay?

The company car is classified as a fringe benefit by the Government, so it is subject to a Benefit (BiK) tax. The amount you pay is therefore based on a percentage of the vehicle’s P11D value, which is its price including options, plus VAT and delivery charges, not registration or road taxes. . The BiK The percentage you pay is determined by the car’s CO2 emissions, with its output falling into bands that are then linked to the percentage.

Depending on whether you pay Income Tax at a lower or higher rate (we’ve focused on the 20 and 40% Income Tax brackets here), the annual In-kind Benefit bill is then prorated This 20 or 40% of the resulting figure. But with many things in life, it’s common for people to pay each month, so we’ve divided this number by 12 to show you the company’s monthly car tax bill.

As you’ll see from our numbers, the rule changes over the past few years have meant all-electric cars, especially large BiK pickups, but plug-in models. in hybrid also receive preferential rates.

Time to go electric?

As a company car, electric cars are not an obvious choice. They were held back by short range estimates and limited model choices, but now electric cars have become more viable – offering greater range when fully charged in all areas. area on the market, while recharging faster. With many new EVs offering plenty of range and fast charging, they’ve become a viable proposition.

Factor in, any car rated at 0g/km CO2 (which is every EV sold today) will only collect two per cent tax rate from the benefit, and it makes for a high number of machines. The level is amazingly affordable, based on the kits and quality on offer.

Best company car by price bracket



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