- Don’t assume new SUVs will cost less to tax
- Mazda CO2 rise means 15% higher BIK charge
- Higher Volvo list price outweighs lower CO2
Company car drivers hunting for the lowest tax models may accept a slight BIK penalty to get a high-riding SUV, but what you wouldn’t expect is for new versions of several models to actually cost you more in BIK tax than their predecessors. However, that’s the case with two popular low-emission models; the Mazda CX-5 and Volvo XC60.
In the Mazda’s case, not only have list prices risen – one factor that affects how BIK tax is calculated – but the emissions themselves have jumped, moving the CX-5 up three tax bands.
Meanwhile, the new Volvo XC60 will set you back an additional £2,670 in all-wheel drive D4 form. Though claimed emissions have dropped, this isn’t enough to counteract the higher list price, resulting in a 4% rise in BIK payments.
Mazda CX-5 drivers foot 15% increase in BIK charges
While the two-wheel drive Mazda CX-5 used to sneak under the 120g/km mark, with 119g/km claimed emissions slotting it into the current 25% BIK band, the new equivalent now emits 132g/km.
According to Mazda this figure is much more realistic than the previous generation; however, though this might mean you spend less on fuel, anyone moving from old to new CX-5 will see their tax bills jump up.
While any company car drivers running the new car in the 2017/18 tax year will have to stump up £232 per month in BIK payments, this rises to £268 per month for those choosing the new car (for 40% taxpayers); a substantial increase of 15%.
Old Mazda CX-5 2.2d 150hp Sport Nav
Emissions: 119g/km (25% BIK)
BIK (20/40%): £116/£232
New Mazda CX-5 2.2d 150hp Sport Nav
Emissions: 132g/km (28% BIK)
BIK (20/40%): £134/£268
Monthly Volvo XC60 BIK charges rise from £331/month to £345/month (40% taxpayers)
Unlike the Mazda, the Volvo XC60 D4 AWD’s official CO2 emissions have dropped in the transformation from old to new model. Though the old car pumps out 137g/km of CO2, the new version emits just 133g/km, helping it to fall from the 29% BIK band into the 28% band.
However, the near-£2,700 price hike to get an entry-level D4 all-wheel drive diesel means that it is the older car that will save you money in tax. Monthly BIK bills for 40% taxpayers weigh in at £331 compared with £345 for the new car.
Much of the new model range also exceeds the £40,000 mark, too, meaning that it will be liable for a £310 annual road tax surcharge in its second to sixth year. As a result, company car drivers can expect to see higher leasing prices for many of the new XC60 model line-up, with a £26-per-month increase likely, simply to cover the higher tax cost.
Old Volvo XC60 D4 AWD SE Nav
Emissions: 137g/km (29% BIK)
BIK (20/40%): £166/331
New Volvo XC60 D4 AWD Momentum
Emissions: 133g/km (28% BIK)
BIK (20/40%): £173/£345