Five timely tax dodgers

Five timely tax dodgers

Posted by

Martin Brown

March 2013

It’s nearly April, and if you’re a company car driver, are you wondering what the taxman might be liberating from your hard-earned wages at the end of the month?

Company car tax rarely stands still; and this April will be no exception as the tax bands move up by 5g/km CO2 putting most company cars in a higher tax band.

A higher tax band equals more tax. And while I’m sure we’re all keen to help lower the national debt, I’m sure there are levels to your generosity.

So I’ve been thinking: what sort of vehicles might be able to help you out?  Maybe not all will meet your company’s fleet policy – but if you don’t ask!

So here we go.

 

1. Mine’s a MINI!
Not any MINI, but the new MINI Clubvan. And because it’s a van, it means benefit in kind is a flat rate of £3,000. If you’re a 20% tax payer that’s only £50 a month!

Cons? Lack of rear seats for clients.

Company car tax rarely stands still; and this April will be no exception as the tax bands move up by 5g/km CO2 putting most company cars in a higher tax band.

2. Say hello to hybrid
I know you think you should have a diesel company car because that’s what everyone else has. But are they right? Diesels get a 3% company car tax surcharge; hybrids don’t. So drive a new Toyota Auris Hybrid and pay tax at 10% with a BIK of £1,994; drive a Vauxhall Astra diesel and pay tax at 14% with a BIK of £2,783. Simples, eh?

Cons? You don’t get diesel economy.

3. Plug me in
There’s still time to pay no company car tax whatsoever. And that’s by choosing an electric car. They are currently taxed at – well, nothing – and that lasts until the 2015/16 tax year. So grab the tax advantage while you can.

Cons? Hopeless for motorway milers.

4. Dust off a Dacia
It’s the UK’s newest brand with “shockingly affordable” prices. They’re not wrong. Even a top spec Sandero diesel will give you a BIK of £1,364: a miserly £22.75 a month.

Cons? Severe lack of company car park cred

5. Turn it up with a turbo
Back on the petrol vs diesel argument again. Have you noticed how car makers are producing tiny petrol engines but given a dose of up-and-at-em thanks to turbocharging? Ford is one with its 1.0-litre turbocharged EcoBoost engine. Order one in a Focus and pay BIK of just £2,761 – even on a top-spec Titanium X!

Cons? That engine is such a delight you’ll mash the fuel consumption!


You also might like…

If you liked this article then check out our posts about similar topics

We’re Officially Carbon Neutral

It’s not been an easy journey The task has been complex, often challenging, but ultimately highly rewarding: Fleet All...

Can I have a hybrid car on salary sacrifice?

Is it possible to salary sacrifice a hybrid car It’s a question we’re often asked and the answer is, of course! I...

Could Your Fleet Be More Efficient? Let Us Show You How

At Fleet Alliance, our sole focus is helping businesses like yours streamline fleet management and boost efficiency As t...

We’ve been certified as a Great Place to Work for the 13th time!

Thirteen: unlucky for some, but a brilliant achievement for us, for we have just been certified A Great Place to Work fo...

Novus Health implements EV salary sacrifice scheme with Fleet Alliance

Independent healthcare provider, Novus Health, has implemented an electric car salary sacrifice scheme for staff in conj...

Fleet Alliance is the place to work in the financial services industry – official

If you want to work in financial services then you should be considering Fleet Alliance Easy to say, of course, but why ...

“I’m not sure about driving an EV on salary sacrifice because…”

Fleet Alliance challenges some of the myths surrounding electric cars   Salary sacrifice is the most popular wa...

Unlocking success in vehicle fleet management

Are you tired of the headache associated with running a fleet, and are you constantly juggling administrative tasks, gra...

Ready to make the management of your fleet more efficient?

Request a call back


Or Call Us On: 0345 601 8407
Schedule a call back