Company Car Tax.

The new company car tax system, outlined in the last budget, will introduce a series of measures that will directly affect motorists and employers.

•  A new system for taxing private fuel benefit from April 2003 based on co2 emissions.
•  Higher employer’s National Insurance contributions on company cars.
  New VAT scale charges for private fuel
•  No duty changes for petrol and diesel.
•  A reduction in duty for biodiesel (duty on biodiesel will now be charged at 20p per litre less than petrol and diesel).
•  Faster tax relief for businesses buying low emission cars.
•  Reductions in tax disc rates / Vehicle Excise Duty (VED)
  

New Benefit-in-Kind Taxation.
A revised system for taxing company car benefit came into force on 6th April 2002. As part of a series of initiatives designed to tackle global warming and improve local air quality, the new system rewards cleaner, more fuel-efficient cars. It links the Benefit-in-Kind to a car’s exhaust emissions.