P11d Pain – Changing the ownership of your company car can be highly beneficial
You have had the use of a company car bought new for a number of years. While the value of that vehicle has gone down substantially, you keep having to pay Class 1A NICs and personal income tax on the list price at a rate determined by its CO2 output. The fuel economy is probably poor compared to new models.
In some cases, the tax per year can more than the value of the car. This is probably false economy and it may be worthwhile the company passing you the car.
Also business mileage at 45p per mile tax free may exceed the running costs of holding the car privately.
If the annual p11d charge is approaching the value of the car, it is time to consider your options. Please call if you want to follow up on this idea.