Fleet Decision Makers

Why is CO₂ important to fleets and drivers?

CO₂ Implications to consider:

  • Class 1A National Insurance ( 13.8%) paid by employers and linked to CO₂ of the car and also chargeable on any private fuel benefit provided
  • Lower C0₂ can often mean better fuel economy and be linked to other fuel saving Drive-e technologies, such as Start/Stop function
  • Company Tax Allowances are linked to CO₂

Company Tax Allowances:

  • Capital allowances, which affects the rate at which companies can write down the cost of buying cars against taxable profits from tax year 2015/2016.
    • Sub 75g/km – 100% write down in year 1
    • 76-130g/km – 18% each year on a reducing balance basis
    • Above 130g/km – 8% each year on a reducing balance basis
  • Lease rental restriction, the amount of the lease rental payments claimable against corporation tax
    • Under 130g/km fully deductible against taxable profits
    • Above 130g/km 85% deductible against taxable profits

Download the 2015/2016 Tax Guide

Visit our comparison tool to see information on the chosen models including, BIK for current and coming tax years, National Insurance, SMR, pence per mile and full specification comparisons. There is also useful information for fleet decision makers on topics including good fuel management and journey planning in our Fleet Factsheets section and also in our Co-Pilot programme.