Company car tax: how to keep your bill low | Autocar

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You'd be surprised how much your car's specification affects benefit-in-kind tax - so we've made a guide to help you keep costs down:

Besides the tougher test cycle, one of the biggest changes under WLTP is more granular efficiency data that recognises the effects of individual optional extras. The downside for company car drivers is that desirable options such as larger wheels tend to increase CO2 emissions , which can nudge the car up a tax band or two. That’s a big price to pay over a three-year lifespan. Fleets have massive buying power and can negotiate vehicle discounts that aren’t available to private buyers.

In response, some manufacturers offer specific trim levels, with a low list price, limited or no discounts and equipment tailored towards company car drivers. These offer reduced BIK payments compared with an equivalent retail-focused version. Vans and pick-up trucks are a bit of a BIK loophole. Instead of a sliding scale based on a CO2-weighted percentage of their list price, the taxable value is fixed at £3,600 , which can make them a tax-efficient alternative to a large car.

 

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