The government is changing the company car tax system in 2012 by making it more difficult for low emission cars to qualify for the lowest benefit-in-kind tax bands.
For the next two years a driver choosing a car with CO2 emissions of 120g/km will enjoy being in the lowest 10% banding (13% for diesels), but the government has changed the rules in a bid to get company car drivers in cars that emit even less carbon dioxide.
As from April 1, 2012, when the new system comes into effect, some cars will move up by at least four BIK bandings resulting in a 25% increase in company car tax.
If you're in the process of choosing your next company car and want to remain in the 10% benefit-in-kind tax band (or 13% for diesel models), the following 13 cars are the only ones that currently qualify.
- Smart fortwo cdi (89g/km of CO2/ BIK - 13%)
- Toyota Prius (89 or 92/10%)
- Ford Fiesta ECOnetic (98/13%)
- SEAT Ibiza ECOmotive (98/13%)
- Vauxhall Corsa EcoFLEX (98/13%)
- Audi A3 1.6 TDI (99/13%)
- Citroen C3 1.6 HDi Airdream+ (99/13%)
- Ford Focus ECOnetic start/stop (99/13%)
- Peugeot 207 1.6 HDi Economique (99/13%)
- SEAT Leon ECOmotive (99/13%)
- Toyota iQ (99/10%)
- Volkswagen Golf BlueMotion (99/13%)
- Volvo C30 1.6D DRIVe (99/13%)
To find out how much your car will cost in company car tax, go to the free Company Car Driver car tax calculator. Click here.
