Mercedes A200: a company car star?

  • Does our Mercedes work out as a company car?
  • We guide you through all of the financial aspects
  • Monthly tax and range explored in detail

Since it’s what I’d call a desirable diesel hatchback, I thought I’d give you a bit of a steer through how to evaluate whether my A200 CDI AMG Sport makes the grade as a company car.

First, let’s look at costs. Company car tax is in the forefront of every company car driver. It’s also very confusing, so let me try and clarify it for you.

You’ll need your car’s P11d value as a starting point. This is the list price of your car minus any road tax or first registration fee.

With that in mind, my car’s P11d value as standard is £24,490. That’s not the end of it, however – my car has a whole host of optional extras. These push the A200’s P11d value up to £29,845.

Next we need to find out how much benefit-in-kind taxation you’re liable for. This is based on a car’s CO2 emissions, which in my case are 121g/km.

Checking against the Parkers Company Car Tax Explained article, you can see that once I’ve factored in the 3 percent diesel surcharge I’ll be liable for taxation at 19 percent.

What I need to do now is multiply my P11d value by 0.19 to find out what 19 percent  is. The figure I get is £5,670.55.

The next part is to identify how much tax you’ll have to pay. This is based on your salary. I’m a 20 percent tax payer since I earn less than £32,010. If you earn over that amount you’ll have to pay 40 percent, and if you’re lucky enough to earn over £150,000 per year then it’s 50 percent taxation for you.

So, working out 20 percent of £5,670.55 gives me a company car tax figure of £1,134.11 for the year.

As I budget monthly, that means company car tax of £94.51 must be budgeted for.

One of the best ways of dropping your company car tax bill is to be careful with the optional extras you pick. In my case, I could have saved £17 each month by not choosing any extra kit.

A lot of optional extras are a personal thing though, and I have to admit I’d go for the Audio 20 stereo system and the panoramic sunroof.

The other thing to consider about the A-Class is its range. While many company car drivers don’t pay business mileage, there’s still the weekend to consider. My car’s claimed fuel economy is 62.8mpg on the combined cycle, which means it should be capable of around 770 miles between trips to the filling station. Mine does 50mpg during normal mixed driving, which means a range of 615 miles.

Of course, while all this makes good reading, if you're doing a lot of miles then it may be worth considering the more comfortable suspension setup now available.

Don't forget, you can work out your company car tax using the Parkers Company Car Tax Calulator tool.

Mileage: 6,004

Fuel economy: 50mpg