Budget 2008 Key Points
-
Introduction of a new 10% band (13% for diesels) for company cars emitting less than 120g/km of Co2
-
Current emission levels to remain the same.
Lower threshold reduces to 130g/Km in 2011/12
-
Major reform of Vehicle Excise duty from April 2009
-
VED for petrol and diesel cars in Band G to rise to £400 in 2008/2009
-
VED rate rise by £5 for cars in Bands C-F in 2008/2009
-
VED rate rise of £5 on all LCV’s in 2008/2009
-
Writing down allowance for all cars to be reformed in 2009 in line with Co2 emissions
-
Fuel benefit tax calculation to be increased to £16,900
-
Fuel Duty increase by 2p per litre October 2008-04-15
Company car Tax
The threshold for the minimum percentage charge reduces to 135g/km for 2008/2009 and is frozen until 2010.
In 2011 it reduces to 130g/km
The new 10% tax band for company cars with a Co2 emission of 120g/km or less is applicable from 1st April 2008.
The 3% Diesel surcharge still applied
Taxable Percentage of P11d Value.
| % of P11D price to be taxed |
2008/2009 CO2 (g/km) |
2009/2010 CO2 (g/km) |
2010/2011 CO2 (g/km) |
|
10
|
120
|
120
|
120
|
|
15
|
135
|
135
|
130
|
|
16
|
140
|
140
|
135
|
|
17
|
145
|
145
|
140
|
|
18
|
150
|
150
|
145
|
|
19
|
155
|
155
|
150
|
|
20
|
160
|
160
|
155
|
|
21
|
165
|
165
|
160
|
|
22
|
170
|
170
|
165
|
|
23
|
175
|
175
|
170
|
|
24
|
180
|
180
|
175
|
|
25
|
185
|
185
|
180
|
|
26
|
190
|
190
|
185
|
|
27
|
195
|
195
|
190
|
|
28
|
200
|
200
|
195
|
|
28
|
205
|
205
|
200
|
|
30
|
210
|
210
|
205
|
|
31
|
215
|
215
|
210
|
|
32
|
220
|
220
|
215
|
|
33
|
225
|
225
|
220
|
|
34
|
230
|
230
|
225
|
|
35
|
235
|
235
|
230
|
Capital Allowances (Business cars)
With effect from April 2009 Capital Allowances will be based on Co2 emissions.
Vehicles with a Co2 of 160g/km or less will attract an allowance of 20%
Vehicles with a Co2 greater than 160g/km will attract an allowance of 10%
Expensive Car Leasing Disallowance
The current disallowance for leased cars costing over £12,000 will be replaced by a disallowance based on CO2. From April 2009, cars with CO2 emissions above 160g/km will attract a 15% net disallowance relating to finance payments. For cars with emissions of 160g/km or below there will be no disallowance.
Class 1A National Insurance Contributions
For 2008/2009 the percentage for calculating an employers’ class 1 National Insurance Contributions on a company car remains at 12.8% of the taxable value (based on the P11d value)
Free Fuel Benefit
Employer provided "Free fuel" benefit calculation has been increased to £16,900
|
