CUPRA MARCH 2024 Born Formentor Owner’s Manual
- June 1, 2024
- CUPRA
Table of Contents
CUPRA MARCH 2024 Born Formentor
Specifications
- Model: Company Car Tax – CUPRA for Business
- Release Date: March 2024
- Key Features: Electric vehicle, Benefit-in-Kind tax
calculation, CO2 emissions tracking
Company Car Tax Bands Overview
Company Car Tax bands will remain the same for the next 2 years with certain
increases in Benefit-in-Kind rates. For low emission bands below 75 g/km, the
Benefit-in-Kind will increase annually for the next 2 years.
Vehicle Excise Duty (VED)
The Vehicle Excise Duty system applies to new car registrations based on CO2
emissions. The First Year Rate is determined by the vehicle’s CO2 emissions
figure.
Fuel Benefit Charge
The Fuel Benefit Charge is applicable based on the type of fuel used and CO2
emissions of the vehicle.
How to Calculate Company Car Tax (Benefit-in-Kind)
- Determine the P11D value of the car, its fuel type, CO2 emissions figure, and zero-emissions range for hybrids.
- Lookup the corresponding Benefit-in-Kind percentage based on the CO2 emissions figure.
- Apply the 4% diesel surcharge if applicable for non-RDE2 compliant diesel vehicles.
- Multiply the P11D value by the BiK percentage, round down to the nearest pound, and then multiply by your personal income tax rate.
Frequently Asked Questions (FAQ)
Q: What is Company Car Tax?
A: Company Car Tax, also known as Benefit-in-Kind tax, is a tax on the
personal use of company cars provided by an employer.
Q: How are Vehicle Excise Duty rates determined?
A: Vehicle Excise Duty rates are determined based on a vehicle’s CO2 emissions
figure and fuel type, with different rates for petrol/diesel and
electric/alternative fuel vehicles.
INTRODUCTION
The March 2023 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. And as previously announced, VED is set to be introduced to electric vehicles from April 2025. For drivers of petrol, diesel and hybrid cars, the Chancellor announced that the current freeze on fuel duty and the temporary £0.05p cut per litre remain in place for another twelve months.
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 decarbonise, 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
Tavascan anticipated in 2024 and the Raval 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 Formentor 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 for the next 2 years, 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 had increases to first year rates and standard rates. It
was also announced that from 2025 zero emission vehicles will be eligible for
the standard rate of tax from the second year onwards at that time 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 at £27,800 in 2023/24 tax year
FUEL DUTY Last year’s 5p per litre cut in fuel duty will remain in place for
2023/24.
CLASS 1A NIC
The percentage used for calculating Class 1A NIC on company cars and fuel in
2023/24 has returned to the 13.8% rate.
VEHICLE EXCISE DUTY (VED)
The Vehicle Excise Duty system for new car registrations is summarised
belowand 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 CO2 emissions figure. Standard Rate
is payable from the second year] and priced at £180. Alternatively 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 £355 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 2023/24
WLTP CO2 emissions] (g/km) Payment
- 0 £0
- 1-50 £10
- 51-75 £30
- 76-90 £130
- 91-100 £165
- 101-110 £185
- 111-130 £210
- 131-150 £255
- 151-170 £645
- 171-190 £1,040
- 191-225 £1,565
- 226-255 £2,220
- Over 255 £2,605
STANDARD RATE TABLE 2023/24
Fuel type Payment
- Petrol or diesel £180
- Electric £0
- Alternative £170
COMPANY CARTAX
Company Car Tax is more commonly known as Benefit-in-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 CO2 emissions figure and find the corresponding BiK
percentage. If your hybrid vehicle has a CO2 emissions figure of no more than
50g/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
E X A M P LE :
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 Formentor e-HYBRID
A CUPRA Formentor VZ1 e-Hybrid DSG-auto 245 registered after 19 December 2023
has a P11D value* of £42,495, 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 £42,495×12%=£5,099.40
rounding down to nearest pound is £5,099.
For a 20% tax payer, tax is £5,099 x 20% = £1,019.80 (£84.98/mth).
For a 40% tax payer, tax is £5,099 x 40% = £2,039.60 (£169.97/mth).
CAPITAL A LLOWA NCES
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
CO2. 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%.
EXAMPLE:
HOW TO CALCULATE EMPLOYERS’
CLASS 1A NIC. A CUPRA Formentor V2 TSI DSG-auto 150| with a P11D value* of
£34,315, has CO, emissions of 155g/km. This corresponds to 36% Benefit-in-Kind
rate which gives a taxable benefit of £34,315x 36% = £12,353. When multiplied
by 13.8%, the annual Class 1 A NIC due on the car is £1,704.71. For annual
Class 1A NIC on fuel, figures for the car’s tax percentage and the Government
fuel benefit charge (FBC) – £27,800 in 2023/24 – are used. Multiply the FBC by
the tax percentage and then by 13.8% to calculate the annual NIC due. For the
Formentor 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
2023/24 tax year. You’ll also need your car’s combined fuel consumption figure
and BiK tax percentage – see example, right. CO, 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
2023/24 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 December 2023.
EXAMPLE :
CALCULATING FUEL ALLOWANCE AS PART OF EMPLOYERS’ CLASS 1A NIC
A new CUPRA Formentor V2 TSI DSG-
auto 150 has combined fuel consumption of 40.9mpg and CO2 emissions of
155g/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 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.
You then need to work out the cost of the private mileage you cover in a year.
Assuming the national average price for petrol of £6.64/ gallon (£1.46 litre),
£2,001 will buy around
301 gallons for a 20% taxpayer. For a 40% taxpayer £4,003 will buy 603
gallons. Multiplying the Formentor’s 40.9mpg combined fuel consumption by 301
gallons gives 12,310 – the private mileage you will need to cover to make the
‘free’ fuel benefit worthwhile. For a 40% taxpayer the figure is 24,662
miles.
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 organisations. 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 Tavascan, 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 Raval anticipated in 2025; your urban
companion, driven by emotion, designed for business.
CUPRA FOR BUSINESS lin 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, March 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, March 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 – £2,605 depending on the CO2 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 CO2 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 March
2024. CO2 emissions can change if a different-sized alloy wheel is ordered
with the vehicle and may also lead to a change to VED and BIK tax liabilities.
Version 6 March 2024