BUSINESS FIRST INNER 39-82:Layout 1 9/6/08 16:54 Page 55
KNOWLEDGE 55
TAX REALLY
on fuel. This would mean that heavy road users and drivers of
inefficient cars pay more and visa versa. Plus the fuel companies
would meet the cost of collecting the tax. Simple and cost
effective.
DOES HAVE
Going forwards, companies need to place less emphasis on
buying by cost or monthly lease rate and more on a combination
TO BE TAXING
of the latter, CO2 and MPG performance. The differential between
petrol and diesel pump prices combined with new technology
making petrol engines significantly more fuel efficient and petrol
cars costing £1000+ less that their diesel alternative, means that
many low mileage drivers will be better off with a petrol engine. Not
Taxes on fuel, taxes on cars and taxes to save the
to mention their hands won’t smell of ‘Eau de diesel’ after filling up.
environment are hot news at present. For the car
owner and fleet manager it can all get a bit
So if you are in line for a new car, then I suggest you read the
technical data first and then look at the pictures. One
confusing. Our fleet management consultant
manufacturer that has really used the new tax laws to its
Richard Mole says if we understand the system we
advantage to steal a march on its competitors is BMW. Using their
can work it to our advantage. ‘Efficient Dynamics’ slogan/technology, they offer a tax friendly car
in pretty much every sector. Below are examples of BMW’s virtue,
Although the government slogan says tax doesn’t have to be and some alternatives to avoid:
taxing, I can’t see it myself. Frankly, over the years I have become
quite cynical about such advertising slogans. Just look at British BMW:
Rail’s “we’re getting there” from the 80’s; rail franchises still haven’t Sector Model CO2 Combined 0-62
provided a viable alternative to the company car. Then there is
MPG
Mitsubishi’s 4-door saloon called the Carisma, which was the most
Small family
un-charismatic car on the road. So, if an advertising slogan or
hatch
118d 5 door 119 62.8 9.0
brand says one thing, the opposite is probably the truth.
Executive
330d Coupe 160 46.3 6.6
Coupe
But tax isn’t all bad news; I actually believe the new road tax bands
Executive
318d 4 door 123 60.1 9.3
below will help steer people into cleaner and more economical
saloon
cars by incentivising drivers to switch to lower CO2 vehicles and pay
Large Executive
520d 4 door 136 55.4 8.3
less than they probably are now, and that’s a good thing.
Saloon
4*4 X5 3.0d automatic 214 34.9 8.3
Below are the new bands:
Large Coupe 635d 183 40.9 6.3
Band Co2 rate
1
2008-2009
2
2009-10 2010
Others:
A up to 100g £0 £0 £0
B 101-110g £35 £20 £20
Sector Model CO2 Combined 0-62
C 111-120g £35 (B) £30 £35
MPG
D 121-130g £120 (C) £90 £95
Small family Mazda 3 4 dr.
E 131-140g £120 (C) £110 £115
hatch 2.0 189 35.8 9.1
F 141-150g £120 (C) £120 £125
Coupe Alfa Romeo
Brera 3.2 JTS 260 25.7 6.8
G 151-160g £145 (D) £150 £155
Executive saloon Saab 9-3 1.8i 183 36.7 9.0
H 161-170g £145-170 (D-E) £175 £180
Large Executive
I 171-180g £170 (E) £205 £210
Saloon
Volvo S60 2.0T 212 31.7 8.2
J 181-200g £170-210 (E-F) £260 £270
4*4 Nissan Murano
K 201-225g £210 (F) £300 £310
3.5 V6 CVT 295 23.0 9.0
L 226-255g £400 (G) £415 £430
Large Coupe Jaguar XK 4.2 V8 269 22.9 5.9
M over 255g £400 (G) £440 £455
Looking at the above, you will see that BMW’s Efficient Dynamics
1
Per km.
2
Brackets show current band.
claim rings true on paper.
The above table is pretty useless unless you know what the CO2
I hope the above gives you some pointers to operating a more tax
rating of your car is so to find this out just visit
and fuel-efficient fleet. The only other thing I ought to mention is the
www.vehiclelicence.gov.uk and click on ‘vehicle enquiry’ and enter
governments new ‘showroom tax’ that comes into effect in 2010,
the details of your car.
but lets worry about that another day!
Although I think the new bands are a good idea. The whole
See Couldwell on Cars on page 70 for further car choices.
concept of having a road fund licence tax is a massively inefficient
way to tax the motorist. If I had my way, I’d scrap it and put the tax
Source: Richard Mole, MD of AFS www.autofunding.co.uk
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