Twin carbon letter
You stated that the cost of a new hybrid, such as a Toyota Prius, could be offset against tax. I am considering ordering a new Mk3 Prius as soon as they become available next month and would dearly like a definitive statement on the tax position. Could you perhaps clarify this – either by replying to this or in your column in the near future.
Asked on 19 September 2009 by
Answered by
Honest John
Basically if a car emits 110g/km CO2 or less any company that buys it can offset 100% of the cost against one year’s turnover for tax
purposes. If you have the car as your company car you then have to pay BIK tax on it based on CO2 and list price. Prior to 31-3-2008 the CO2 limit was 120g/km, and I took advantage of that a couple of weeks before the deadline. £9,500 less taxable income for my company, and I’ll pay about £450 in tax. Less than 100g/km puts a company driver in a very favourable tax position, and, of course, a hybrid is London Congestion Tax exempt.
purposes. If you have the car as your company car you then have to pay BIK tax on it based on CO2 and list price. Prior to 31-3-2008 the CO2 limit was 120g/km, and I took advantage of that a couple of weeks before the deadline. £9,500 less taxable income for my company, and I’ll pay about £450 in tax. Less than 100g/km puts a company driver in a very favourable tax position, and, of course, a hybrid is London Congestion Tax exempt.
Our honest used car pricing is a little bit different to all the others. You can get to our values through make or model - you don’t have to follow a prescribed route. Plus, it’s live, which means we can react to changes in the market quicker than any printed price guide.
Honest Used Car Prices
Everything you need to know about choosing and running your company car, from how much tax you'll pay to your rights.
Company Car Guide
Dear Honest John,
Please help me choose my next car. I would like it to have:
Please help me choose my next car. I would like it to have:
Similar questions
Can you explain what '100% write down' means in real terms on company cars that emit less than 110g/km CO2?
My daughter-in-law will very shortly be choosing another company car. Her current car is a Ford Focus 1.8 diesel (I think). However, she is now considering a hybrid because of VED band A zero tax. Her...
In your review of the Toyota IQ 1.0 litre you state: "they all qualify for 100% first year capital allowance, so if your company buys one for you it can claim the entire cost against one year’s profits....
Related models
.jpg?width=115&height=75&rmode=crop)
Low CO2 emissions and zero car tax. Spacious cabin makes it a realistic family car. Plug-In version escaped London Congestion Charge.
Elsewhere on 
.jpg)
