BUDGET REPORT
9 MARCH 1999
COMPANY
CARS
Pending a change to a system of taxing company cars based on carbon
dioxide emissions in 2002/03, the effective rates of taxable benefit have been
amended for the years 1999/2000 to 2001/02.
Effective rate of taxable benefit Car
under 4 years Car 4 years or over
Standard taxable benefit
35% 26.25%
Business mileage 2,500-17,999 p.a. 25% 18.75%
Business mileage 18,000 and over 15% 11.25%
Generally, second cars will be taxed on the standard 35 per cent benefit,
with a reduction to 25 per cent if business travel if that car exceeds 17,999
miles a year.
BRAND NEW FLEET
CAR OR OLDER EXECUTIVE CAR -
THE TAX COSTS COMPARED
Ford Mondeo 2.Oi Ghia Mercedes Benz E220
Purchased 6.4.98 6.4.98
Registered 6.4.98 5.4.95
Original list price £17,345 £25,360
Actual price £15,600 £15,900
List price 17,345 25,360
Standard benefit (35% list
price) 6,071 8,876
Reduction for car four or more
years
old on 5 April 2000 (1/4) 2.219
Benefit taxable for 1999/2000 6,071 6.657
Monthly tax for 23% taxpayer £116.36 £127.59
Monthly tax for 40% taxpayer £202.37 £221.90
VAT SCALE CHARGE - VAT DUE
VAT scale rates for 1999/2000 are as follows:
PER QUARTER PER CAR
Petrol Diesel
£p £p
Up to l4OOcc 31.57 29.19
1401 -2OOOcc 39.91
29.19
Over 2000 cc 58.97
36.93

