Top tips to keeping your company car tax low

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Company cars are a great perk for employees; however it is important for employers to be aware of how they can keep the tax low.
Vehicles

To find out the top tips to keep company car tax low, read the Employee Benefits article.

There has now been an introduction of low-emission company car tax rules.

Put in a CO2 cap

Cap the amount of CO2 emissions the company car produce, because benefit-in-kind tax is determined by CO2 emissions and the car’s list price. If the BIK tax is low, then employers can keep their National Insurance contributions down.

Example: cars under 50/km CO2 will attract no more than 9% BIK tax for the next 3 years, with the cost increasing to 13% in 2018-19.

ABAX’s triplog technology can highlight your fleet CO2 emissions.

Introduce green cars

The introduction of green cars (electric and plug-in hybrid electric) could perhaps increase the popularity of company cars among employees

Follow the manufacturer’s lead

Manufacturers strive to reduce emissions; therefore company car drivers can look to maintain lower tax rates.

Lauren George

Company car tax and ABAX