Keeping up to speed with range of changes to company car tax
The move to a CO2-based benefit-in-kind system level to determine company car tax incentivises the use of electric vehicles and lower emission cars while temporary tax reliefs are available for higher-emitting vehicles
I confess to being passionate about cars and therefore any changes on taxing them always gets my attention. The taxation of company cars changed from January 1, 2023, and then they changed again at the start of this month.
The January 2023 method looks at, among other things, the car’s CO2 emissions. In general, subject to reductions for business mileage, reductions for electric vehicles and certain other exclusions, an employee will be taxable on what’s ...