CUPRA 2024 Car Tax Owner’s Manual

2024 Car Tax
Owner’s Manual

APRIL 2024

2024 Car Tax

GUIDE TO COMPANY CAR TAX CUPRA FOR BUSINESS

INTRODUCTION

The March 2024 Budget made no specific changes to car tax rates, so the Benefit-in-Kind tax of two per cent for fully electric company cars will remain frozen until 2025. For drivers of petrol, diesel and hybrid cars, the Chancellor  announced that fuel duty will remain at the current levels for a further 12 months, and that the planned increase in line with inflation for 2024-25 has been cancelled.
Meanwhile, the government continues to pave the way for all new car  and van sales to be zero-emission by 2035, by launching a consultation on its plans for a zero-emission vehicle (ZEV) mandate. Add in the fact that businesses are facing increasing pressure to decarbonize, and it’s clear that now is the time to consider making the switch to electric.
For businesses considering the possibility of electrifying their fleets, it’s worth noting that, even though energy prices have risen, charging at home or work using a renewable energy tariff  specially designed for EV drivers is still significantly cheaper than traditional fuels. And with two new 100% electric models being introduced to join multi-award-winning Born – the Tarascan anticipated in 2024 and the Ravel anticipated  in 2025 – we’re shaping an electric future that’s looking bright indeed. And of course, while you’re thinking ahead, the firm-fleet Favourites Born and For mentor e-HYBRID ensure you can find your perfect alternative-fuel CUPRA today.
COMPANY CAR TAX BANDS
Company Car Tax bands are set to remain as they are into 2025, with Benefit- in-Kind rates increasing by 1% in 2025/26.For low emission bands below 75 g/km, the Benefit-in-kind will increase by 1%a year for the following 2 years to  2027/28.
VEHICLE EXCISE DUTY
Vehicle Excise Duty standard rate for cars will increase by the RPI on 1 April 2024. From 2025 zero emission vehicles will be eligible for the standard rate of tax from the second year onwards, the expensive car supplement exemption for zero emission vehicles will also be ending, and cars registered after 1 April 2025 will be liable to pay the expensive car supplement.
THE FUEL BENEFIT CHARGE
The Government fuel benefit charge (FBC) used to calculate the tax due on employer provided fuel for private use is set to remain at £27,800 in 2024/25 tax year.
FUEL DUTY
The 5p per litre cut in fuel duty will remain in place for 2024/25.
CLASS 1A NIC
The percentage used for calculating Class 1A NIC on company cars and fuel in 2024/25 remains at 13.8%.

VEHICLE EXCISE DUTY (VED)

The Vehicle Excise Duty system for new car registrations is summarised below and shown in the table (below).
First Year Rate is applied to all new cars, when they are first registered. The First Year Rate is based on vehicle’s CO 2 emissions figure.
Standard Rate is payable from the second year and priced at £190. Alternative fuelled vehicles receive a £10 reduction, zero emission vehicles are currently exempt, however from 1 April 2025 zero emission vehicles and alternative  fuelled vehicles also will be eligible for the standard rate.
Additional Rate is applied to all vehicles excluding zero emissions with a list price over £40,000 including options. It is an additional £410 per year and is payable from the second year for the next five years. The exemption for zero  emission vehicles will end in 2025, new zero emission cars registered on or after 1 April 2025 will be liable to pay the expensive car supplement where eligible.

FIRST YEAR RATE TABLE
2024/25

STANDARD R ATE TABLE2024/25

COMPANY CAR TAX

Company Car Tax is more commonly known as Benefiting-Kind (BiK) tax. To calculate your BiK you need to know the P11D value of the car at first registration, its fuel type and its CO2 emissions figure. If it is a hybrid you will also need to know its range in zero emissions mode.
Look up your car’s CO, emissions figure and find the corresponding BiK percentage. If your hybrid vehicle has a CO, emissions figure of no more than SOg/km use the zero-emissions range figure to calculate the BiK percentage.
If your vehicle is diesel and not RDE2 compliant you will be subject to the 4% diesel surcharge, up to a maximum of 37%. All vehicles purchased after January 2021 should be RDE2 compliant and therefore not subject to the 4%  surcharge.
You then multiply the P11D value of the car by the Bik percentage, round this down to the nearest pound, and then multiply by your personal income tax rate.

Cars

CO2 (g/km)| Electric range miles| 2023- 24 (%)| 2024- 25 (%)| 2025- 26 (%)| 2026- 27 (%)| 2027- 28 (%)
---|---|---|---|---|---|---
0| N/A| 2| 2| 3| 4| 5
1-50| >130| 2| 2| 3| 4| 5
1-50| 70-129| 5| 5| 6| 7| 8
1-50| 40-69| 8| 8| 9| 10| 11
1-50| 30-39| 12| 12| 13| 14| 15
1-50| <30| 14| 14| 15| 16| 17
51-54| 15| 15| 16| 17| 18
55-59| 16| 16| 17| 18| 19
60-64| 17| 17| 18| 19| 20
65-69| 18| 18| 19| 20| 21
70-74| 19| 19| 20| 21| 21
75-79| 20| 20| 21| 21| 21
80-84| 21| 21| 22| 22| 22
85-89| 22| 22| 23| 23| 23
90-94| 23| 23| 24| 24| 24
95-99| 24| 24| 25| 25| 25
100-104| 25| 25| 26| 26| 26
105-109| 26| 26| 27| 27| 27
110-114| 27| 27| 28| 28| 28
115-119| 28| 28| 29| 29| 29
120-124| 29| 29| 30| 30| 30
125-129| 30| 30| 31| 31| 31
130-134| 31| 31| 32| 32| 32
135-139| 32| 32| 33| 33| 33
140-144| 33| 33| 34| 34| 34
145-149| 34| 34| 35| 35| 35
150-154| 35| 35| 36| 36| 36
155-159| 36| 36| 37| 37| 37
160+| 37| 37| 37| 37| 37

EXAMPLE:
HOW TO CALCULATE THE COMPANY CAR TAX YOU PAY.
CUPRA Born 100% Electric
A CUPRA Born V1 58 kWh 230PS e-Boost registered after 27 February 2024 has a P11D value of £35,030 and CO2 emissions of 0g/km. CO2  emissions of 0g/km corresponds to 2% in the table so the taxable  value is £35,030×2%=£700.60 rounding down to nearest pound is £700.
For a 20% tax payer, tax is £700 x 20% = £140.00 (£11.67/mth).
For a 40% tax payer, tax is £700 x 40% = £280.00 (£23.33/mth).
CUPRA For mentor e-HYBRID
A CUPRA For mentor VZ1 e-Hybrid DSG-auto 245 registered after 3 April 2024 has a P11D value of £43,030, CO2 emissions of 33g/km and a zero emissions range of 34 miles. CO2 emissions of 33g/km and a zero emissions range of 34 correspond to 12% in the table so the taxable value is £43,030×12%=£5,163.60 rounding down to nearest pound is £5,163. For a 20% tax payer, tax is £5,163 x 20% = £1,032.60 (£86.05/mth).
For a 40% tax payer, tax is £5,163 x 40% = £2,065.20 (£172.10/mth).

CAPITAL ALLOWANCES

A car’s initial cost, or capital cost, can be offset against corporation tax by a business using capital allowance rules based on the car’s emissions of CO 2 . A 100% first year capital allowance – meaning all the capital cost can be offset  against tax in the first year – applies to new company cars bought outright with CO2  emissions of 0g/km. For new company cars with CO2 emissions of 1-50g/km, the annual allowance is 18% a year, while for cars with CO2 emissions of
51g/km or more the allowance is 6% a year.
LEASE RENTAL RESTRICTION
The amounts a business pays on lease rentals are an allowable expense that can be offset against tax. Cars with CO2 emissions of 50g/km or less are eligible for 100% of their lease payments to be offset against tax, while for those with CO2  emissions of 51g/km or more only 85% is allowable.

CLASS 1A NIC

Class 1A National Insurance Contributions (NIC) are payable by employers on company cars and car fuel at the rate of 13.8%.

E X A M P L E :
HOW TO CALCULATE EMPLOYERS’ CLASS 1A NIC.
A CUPRA For mentor V2 TSI DSG-auto 150 with a P11D value* of £35,885, has CO2 emissions of 157g/km. This corresponds to 36% Benefit-in-Kind rate which gives a taxable benefit of £35,885 x 36% = £12,918.
When multiplied by 13.8%, the annual Class 1A NIC due on the car is £1,782.77. For annual Class 1A NIC on fuel, figures for the car’s tax percentage and the Government fuel benefit charge (FBC) – £27,800 in 2024/25 – are used. Multiply the FBC by the tax percentage and then by 13.8% to calculate the annual NIC due. For the For mentor example above, that works out at £27,800 x 36% x 13.8% = £1,381.10.

FUEL ALLOWANCES

EMPLOYER-PROVIDED ‘FREE’ FUEL
Unless you reimburse your employer for the cost of fuel used for your private mileage in a company car, you will pay tax on it. You can calculate the tax you’ll pay by using the Government fuel benefit charge (FBC) – £27,800 in 2024/25  tax year. You’ll also need your car’s combined fuel consumption figure and BiK tax percentage – see example, right. CO2 and fuel  consumption data for all CUPRA models is available at www.cupraofficial.co.uk or the Vehicle Certification Agency at www.dft.gov.uk/vca.
USING YOUR OWN CAR FOR BUSINESS MILEAGE
If you use your own car for business mileage, you can claim an allowance from your employer based on the HMRC’s Approved Mileage Allowance Payments (AMAP) system – the tax and national insurance-exempt rates agreed by HMRC, shown below:
HMRC AMAP RATES 2024/25
Mileage reimbursement from your employer at a higher rate than the above figures will incur tax, whereas reimbursement made at a lower rate entitles you to claim tax relief on the difference.

| Up to 10,000 miles| Over 10,000 miles
---|---|---
All cars| 45p/mile| 25p/mile

ADVISORY FUEL RATES (AFR)
Advisory fuel rates are used to either reimburse employees for business miles or to repay them for private miles when using a company car. If you reimburse employees at these rates there is no need to pay Class 1A National Insurance and the employee is not seen to have a taxable profit. It simplifies things for both employer and employee.
If you provide a more efficient vehicle such as an e-HYBRID then you might choose to pay a lower rate. If you decide to pay a higher rate then you will need to demonstrate that the true cost is higher than advisory rate.
The rates are based on the fuel type and the engine size other than electric which has one set value.
HMRC reviews the rates quarterly 1 March, 1 June, September, 1 December.
Advisory Fuel Rates in table updated as of 1 March 2024.
Petrol

Diesel

LPG

Electric

EXAMPLE :
CALCULATING FUEL ALLOWANCE AS PART OF EMPLOYERS’ CLASS 1A NIC

A new CUPRA For mentor V2 TSI DSG auto 150 has combined fuel consumption of 40.9mpg and CO2 emissions of 157g/ km. If my employer pays for my fuel for private use, how much tax will I pay on it?
The CO2 emissions figure of 155g/km fo r this model gives it a BiK tax percentage of 36%. Multiplying this by the Government fuel benefit charge of £27,800 gives a taxable value of £10,008. Multiplying again by your marginal tax rate  (20% or 40%) gives annual tax payable of £2,001 for a 20% taxpayer, or £4,003 for a 40% taxpayer.
The CO2 emissions figure of 155g/km for this model gives it a BiK tax percentage of 36%. Multiplying this by the Government fuel benefit charge of £27,800 gives a taxable value of £10,008. Multiplying again by your marginal tax rate  (20% or 40%) gives annual tax payable of £2,001 for a 20% taxpayer, or £4,003 for a 40% taxpayer.
If you cover fewer private miles than the calculated figure, paying for the fuel yourself will cost less than the tax. If your private mileage is greater than the calculated figure, you are better off paying the tax.
ULTRA-LOW EMISSIONS VEHICLES (ULEVS)
WORKPLACE CHARGING SCHEME
The Workplace Charging Scheme (WCS) is a voucher-based scheme that provides support towards the up-front costs of the purchase and installation of electric vehicle charge points, for eligible businesses, charities and public sector  organizations. The contribution is limited to 75% of purchase and installation costs, up to a maximum of £350 for each socket, up to a maximum of 40 across all sites.

THE FUTURE OF CUPRA

As the appetite for electrification continues to increase, we’re with you all the way. With the CUPRA Tarascan , our second 100% electric model anticipated in 2024, you can look forward to more electrifying aerodynamism and more  sporting DNA, all blended with the practical functionality of an SUV.  DISCOVER CUPRA TAVASCAN

You also won’ t want to miss the CUPRA Ravel anticipated in 2025; your urban companion, driven by emotion, designed for business. DISCVER CUPRA RAVAL

CUPRA FOR BUSINESS
www.linkedin.com/company/cupra-uk-for- business/

TERMS AND CONDITIONS. The explanations and data set out in this guide are for general information only, and though given in good faith, are made without any warranty as to their accuracy and do not take into account changes after the date of publication, April 2024. Please refer to your legal or tax adviser for individual professional advice. Images are for illustration purposes only and may not be to the exact specification described. All information correct at date of publication, April 2024. All prices shown are applicable to vehicles in standard trim, are correct at date of publication and include VAT at 20%. All models listed are equipped with standard-fit transmission unless otherwise stated. All CUPRA diesel engines are fitted with a Diesel Particulate Filter (DPF) as standard. The Recommended ‘On The Road’ price includes delivery charge to Retailer and number plates, one year’s Road Fund Licence at the 1st year rate (£0 – £2,745 depending on the CO alloy wheel is ordered with the vehicle and may also lead to a change to VED and BIK tax liabilities. output of the vehicle), and the new vehicle registration fee (£55). VAT is calculated at 20.0%. CUPRA may change RRPs at any time (this includes where there are government changes in regulation and/ or legislation). There may be a delay to any RRP displaying correctly on our materials. Always obtain prices from your chosen CUPRA Retailer. Plug-in vehicles require mains electricity for charging. Figures for hybrid vehicles were obtained using a combination of battery power and fuel. Figures shown are for comparability purposes; only compare fuel consumption and CO 2 figures with other vehicles tested to the same technical procedures. These figures may not reflect real life driving results, which will depend upon a number of factors including the accessories fitted (post-registration), variations in weather, driving styles and vehicle load. Data correct at April 2024. CO 2 2 emissions can change if a different- sized

Version 7 April 2024

References

• Vehicle Certification Agency - GOV.UK

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