If you are reviewing your company car provision the following excerpt from the Revenue and Customs website is recommended reading and will provide a useful insight into the changes planned for the benefit in kind scheme.

Changes from 2010-11
The lower threshold (the CO2 emissions figure which sets the 15 per cent rate) is reduced from 135 to 130 g/km.

The appropriate percentage for cars powered solely by electricity is reduced to 0 per cent for five years.

Changes from 2011-12
The car benefit rules will be significantly simplified from 2011-12. From 6 April 2011:

There will no longer be any reductions for alternative fuels (hybrids, bi-fuels and cars manufactured to run on E85 – types H, B and G).

The diesel surcharge will apply to all diesels (including type L diesels approved to Euro IV emissions limits and first registered before 1 January 2006).

Electric cars will still have an appropriate percentage of 9 per cent, but this will be given directly in primary legislation. The temporary reduction to 0 per cent until 2014-15 will continue to be given by secondary legislation.

The £80,000 limit for the price of a car for car benefit purposes will no longer apply.

The lower threshold (the CO2 emissions figure which sets the 15 per cent rate) will be reduced from 130 to 125 g/km.

The number of letters used to describe cars will therefore be reduced to three: E for electric-only cars (as at present), D for all diesels (current types D and L) and A for all other types (current types H, B, C, G, P).

Changes from 2012-13
The special rules for QUALECs (qualifying low emissions cars, those with CO2 emissions not exceeding exactly 120 g/km) will be abolished.

The lowest appropriate percentage will still be 10 per cent, but will apply to cars with CO2 emissions of up to 99 g/km. The rate for emissions of 100 g/km will be 11 per cent and will increase by 1 per cent for every 5 g/km to the current maximum of 35 per cent, as at present.

Changes from 2015-16
The appropriate percentage for cars powered solely by electricity reverts to 9 per cent unless this figure is changed in any future announcement.

For further information contact us today on 01908 516300 or info@telelease.com to find out if we can help.