Let’s take a look at why it can benefit both driver and company to drive a low-emissions vehicle, as there are some changes that are now relevant. As we all know the budget for the year has recently taken place. Mr Osborne seems to have answered calls for greater benefits on ultra low-emissions by introducing new tax bands. These two bands are for 0-50g/Km and then 51-75g/km (CO2).
This is great news as previous bandings were 1-75g/km, so if you were driving a vehicle with say 45g/km you would gain the benefits in kind(BIK) as someone driving a 75gh/km of only 5% BIK.
Under the new scheme vehicles under 51g/km will be pleased to accept a 5% band in 2015/16 and this will rise further in 2016/17 to 7%. If you fall in to the 51-75g/km your will be in the 9% banding which subsequently rises to 11% over the same period.
All company car tax rates will now only be published three years in advance, this will help when selecting your new car, you will be able to see what banding you will be in over that period of time and therefore understand what BIK you will receive. These figures used to be available for up to five year in advance, this has been shortened. This is because manufactures are constantly bringing out new vehicles with lower and lower CO2.