Being one step ahead of UK tax relief laws can reap huge dividends when it comes to filing those figures each April – and that’s especially true this year, if your company has any kind of vehicle fleet
At the moment, a business buying a new vehicle with emissions of 95g/km or under may claim 100 per cent tax relief on the purchase, in the year of the purchase. If the vehicle’s emissions are above that threshold, the figure plummets to 18 or even just eight per cent.
If you’re planning to make the most of your company’s fleet of vehicles, consider 31 March a red letter day*. On 1 April, however, that advantageous threshold figure will drop down to 75g/km. In other words, now is a very astute time to be purchasing a business-related vehicle or, for larger companies, updating your entire fleet.
Being the leading European marque when it comes to low emissions vehicles, Peugeot offers an impressive selection of cars that fall on the right side of the current legislation. The emissions of zippy city slicker the New Peugeot 108, for example, begin at 88g/km, while the spacious Peugeot 3008 HYbrid4 – the world’s first full diesel hybrid car – also has CO2 emissions of just 88g/km.
But it’s the Peugeot 308 which really should be in fleet buyers’ crosshairs, as the new legislation creeps closer. Crowned 2014 European Car of the Year for its slick looks and superior drive, this stylish five-door family hatchback boasts CO2 from just 82g/km.
This figure is achieved, in part, thanks to the vehicle’s impressively lean weight – just 1,090kg. “[The Peugeot 308] feels really light on its feet, which isn’t a massive surprise given that Peugeot’s managed to shed 140kg in weight, compared to the previous model,” says highly respected motoring journalist and TV presenter Jonny Smith in his glowing review of the model.
“That’s the equivalent of two adult passengers climbing out the car, which has got to improve performance.” Naturally, it has a profound effect on handling, too.
The other major factor behind the Peugeot 308’s green credentials is the sterling work Peugeot has carried out in terms of optimising its vehicles’ engines. Thanks to remarkable innovations such as the marque’s work with selective catalytic reduction, the 120 hp BlueHDi turbo diesel version of the 308 – which Smith refers to as “the star of the show” – achieves a dazzlingly low rating of 82g/km.
So how will purchasing now affect your tax return? Well, purchased today, the Peugeot 308 1.6 BlueHDi Allure, which has emissions of 84g/km, will cost £20,945. This means that, assuming your business pays tax at a rate of 20 per cent, it may claim tax relief of £4,189. If the same business delayed purchase until after 31 March 2015, the tax relief it could claim would fall to just £754.
If company car replacement is on your agenda, it’s clearly time to put your foot down!