Pre-Budget Report – Company Car Tax from April 2012
HMRC have announced changes, to take effect from 6 April 2012, in the company car tax bands which will impact on employees who are provided with a company car which is available for private use.
The appropriate percentages which are used to calculate the benefit for company car tax and Class 1A National Insurance Contributions will include a new 10% band. In addition all CO2 emissions thresholds will be reduced by 5g/km. In order to qualify for the new 10% band company cars must have CO2 emissions of less than 99g/km.
As a consequence of these changes Qualifying Low Emissions Cars will no longer exist as a separatecategory from 6 April 2012.