Company car vs cash allowance - the new rules

[acme]

Apologies if this has been discussed, but I've not seen it anywhere.......

Days before the new tax year started our company informed of us of the new rules, if you have a cash allowance in place of a company car and opt for the car from this April HMRC will charge you whichever of the two is higher in terms of tax to pay. This won't impact current cars, but if you change and opt for a new car and say opt for a hybrid in an attempt to significantly lower your BiK they'll still charge you the higher rate based on the cash!

Inevitably this will prevent drivers from choosing more economical cars.

What's odd is that I've not seen or heard this mentioned by anyone!

I for one was intending on going part hybrid, if possible next time...........

[mr_spock]

ULEVs (ultra low emissions vehicles) are excluded from the changes.

Only applies where the employee has a choice between a car and an allowance, not where only a car or only an allowance is offered.

Reference: https://www.clm.co.uk/company-car-tax/

[acme]

Didn't realise re LEV's, though an EV etc would be virtually impossible for my job!

As with the VED changes this year the government again goes after the working man!

[hepy]

Thanks for this, I was aware of the salary sacrifice changes but not the others.

It now makes sense why my company only offers low emission cars now.

[jonwm]

Interesting this is, I was good by to potentially come out of the car this year as tax is getting stupid and my mileage has dropped, then I saw the 330e was available, if I took this would it exclude me from the higher tax as I get the option of car or cash?
Thanks

[acme]

Nope, as I understand it you'd be clobbered for whichever is the highest. They're de incentivising low emission cars.....

[acme]

Nope, as I understand it you'd be clobbered for whichever is the highest. They're de incentivising low emission cars.....