Would you like the Tax Man to pay the deposit on your New Car!

04 February 2013

Many people when choosing their next car don’t know that if you buy a new car before the end of March 2013 then HMRC could pay the deposit.

If your operating a business and are looking at purchasing a vehicle with a CO2 emission below 110g/km then you will be entitled to write off the cost of the vehicle against your profits for that period. Therefore if you are a basic rate tax payer this will reduce your tax charge by the equivalent of 29% of the value of the car, which is more than the deposit. If you were a higher rate tax payer this could reduce your tax liability by up to 42% of the cost of the vehicle.

You probably also didn’t know that there are over 659 cars that have a CO2 emission below 110g/km. It will surprise you what cars have CO2 emissions below this magic figure, here are just a few examples:

Audi               Some of the A1 and A3’s

BMW              Some of the 1 and 3 Series

Citroen           Some of the C1, C3 and C4’s

Fiat                 Panda’s, 500’s and Punto’s

Ford                Ka’s, Fiesta’s and Focus’s

Honda             Jazz, and Civic’s

Hyundai          I10’s, I20’s and I30’s

Kia                  Picanto’s and Rio’s

Lexus              CT200h’s

Mazda            Some of the 2 and 6 series

Mercedes       Some of A and one of the E Class

Mini                 1.6 One’s and Cooper’s

Nissan            Micra and Note’s

Peugeot         107’s, 207’s, 208’s, 308’S and 508’s

Renault           Clio’s and Megane’s

Seat                Ibiza’s and Leon’s

Skoda             Fabia’s and Octavia

Smart              Fortwo’s

Suzuki Alto’s and Swift

Toyota            Aygo’s and Prius

Vauxhall          Corsa’s and Astra’s

Volkswagen   Polo’s, Golf’s, Jetta’s and Passat

Volvo              C30 and V40’s

So if you are looking for a new car remember that the tax man could pay your deposit. You need to act fast because from April 2013 the CO2 criteria will become even more stringent reducing from 110 g/km to 95g/km.

1 Comment

  1. Madryt

    Iˇ¦ve recently started a blog, the info you offer on this site has helped me greatly. Thank you for all of your time & work.

Submit a Comment

Related articles

Follow our blog via email

Enter your email address to follow this blog and receive notifications of new posts by email.