Accounts: Tip of the week - Motor Vehicle Allowance

It is important when buying a company car that you consider the Co2 emissions of the vehicle as this will affect the allowances you can claim towards your tax liability. From April 2009 if the Co2 emissions of the new vehicle is less than 110g/km then the full cost of the vehicle can be claimed in the first year.

If the Co2 emissions of the new vehicle is less than 160g/km then 20% of the cost can be claimed per annum.

If the Co2 emissions of the new vehicle is more than 160g/km then 10% of the cost can be claimed per annum.

Car manufacturers are aiming to keep the Co2 emissions down and as a result there are a few surprises in what cars are available in the less than 160g/km group.

A few examples of these are;

1. BMW 3 Series Convertible 320d M Sport Automatic - 149g/km
2. Mercedes E 250 CDI Blue Efficiency Coupe 6-spd Manual - 148g/km

If you are considering changing your company car then please give us a call on 0141 643 9200 and we can discuss the best options for you.

Article Keywords: Tax, Company Car, Allowances