Ford Business Finance
Whether you are looking to buy a Ford car or commercial vehicle or are interested in a service that provides Ford car leasing in Kent, we can help. From Ford Mondeo hire purchase to Ford Focus contract hire there is an option to suit all business needs. Foreman Ford are so confident that we can offer you a better service for all of your business & fleet car requirements that we are asking your business to challenge us to work for you. Foreman Ford Business services include:
- Finance Arranged • Servicing & Servicing Plans
- MOT Facilities on Site
- Contract Hire
- Lease Purchase
- Outright Purchase
- Accident Assistance Scheme
- Car and Commercial Vehicles Call us today to arrange a meeting 01732 882173
A guide to company car tax for drivers
Company car tax is designed to do two things. Firstly, to reflect the benefit of you having a car for private use. And secondly, to encourage you to choose a more environmentally-friendly vehicle.
With road transport responsible for about 20% of all emissions, the Government is committed to encouraging drivers to choose greener vehicles. That’s why the amount of company car tax you have to pay is directly related to the amount of C02 produced by your car (measured in grams per kilometre - g/km).
In addition, all Ford vehicles are listed with their official emissions banding here.
How company car tax works
You pay company car tax on a percentage of the P11D value of your car.
The P11D value is the manufacturer’s new price, plus VAT, delivery, number plates and any optional extras.
The percentage of the P11D value you pay tax on is decided by the CO2 emissions of your car and fuel type. To find your emissions figure, you can either look at the car's vehicle registration certificate, or use an official guide, available from the Vehicle Certification Agency (www.vca.gov.uk).
Once you have worked out your P11D value, discovered what percentage of it you’ll pay tax on, and calculated the figure that amounts to, bear in mind that you pay tax on it at your higher rate (either 20% or 40%). This is normally deducted every month from your salary.
Diesel cars and your tax bill
Diesel engines produce less CO2, so your actual company car tax bill should be smaller than the equivialnt size petrol engine. But other factors may offset this and make diesels just as expensive overall.
For a start, diesel models usually cost more than the petrol equivalent, so you have to make sure the higher P11D price doesn't outweigh any advantage from a lower tax banding.
Diesel fuel costs more at the pumps than petrol too, so you need to meet the predicted fuel economy figures from the manufacturer to really benefit.And finally, diesel company cars have a 3% surcharge added to their tax band, bcause of concerns about particulates and other pollutants that come out from diesel exhausts.
Alternative fuels and your tax bill
There is a 3% discount for hybrids (petrol/electric cars), a 2% discount for LPG and a 6% discount for electric-only cars.
The 'free' fuel benefit
You may face a further tax if your employer provides 'free' fuel for private motoring. This could be because you use a company fuel card, for example, and don’t repay the private usage element, or because your employer pays for travel between home and work.
The taxable benefit is now based simply on the Government derived figure of £14,400, multiplied by the same percentage derived from the CO2 table.
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