Why is CO₂important to fleets and drivers?




Fleet Decision Makers

 Implications to consider:

   - Class 1A National Insurance ( 13.8%) paid by employers and linked to CO₂of the car and also chargeable on any private fuel benefit provided
- Vehicle Excise Duty linked to CO₂
- Capital allowances, which affects the rate at which companies can write down the cost of buying cars against taxable profits.
    ○ Sub 95g/km – 100% write down in year 1
    ○ 96-130g/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
- Lower C0₂can often mean better fuel economy and be linked to other fuel saving Drive-e technologies, such as Start/Stop function