Blog // June 25, 2017
If you have a company car, the new tax year brought two pieces of bad news.
Firstly, in most instances there was a 2% increase in the car benefit rate – the percentage applied to the car’s list price to calculate its taxable benefit.
Because the 2% was almost universal, the highest proportionate tax increases were for the lowest emission vehicles.
Secondly, if your company car is part of a salary sacrifice arrangement, then be warned that when you change cars (or April 2020 if earlier), you will be taxed on the salary forgone unless the taxable value of your car is higher.
If you need any advice then please get in touch – we are here to help.