We all want to go green don’t we? And the Government is very keen to try and encourage us to switch to cars that have reduced CO2 emissions and use less fuel.
In case you didn’t notice, a number of changes to the way company cars can be offset against tax came into play in April this year. They might make you consider your options if you are thinking about making changes to your business vehicle or a fleet.
Broadly speaking allowances will be based on the level of CO2 emissions. If you are purchasing a vehicle then 110g/kg will be a figure at the top of your mind because you can get 100% tax allowance on the cost of a car with CO2 emissions at or below this level. For leased cars then 100% offset is available for vehicles with CO2 emissions of 160g/km
Then the rules start to get a bit more tricky. Craig Beale, a partner at Lewis Smith & Co., had this to say. “The new rules are relatively complicated, which makes deciding the best approach on company vehicles quite difficult. There may be implications for your overall tax position that need to be taken into account too. If you have any doubts then feel free to talk to us to establish the best course of action.”
Call 01384 235549 or email info@lewissmith.com today to book a meeting with one of our expert team.
