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How much tax will I have to pay on the new car Im buying from you?

Its a question that many of our New Car Buyers ask all the time, if they work for a company and have to consider how much company car tax they may have to pay.

The short answer is List price of the car, Vehicle emissions and your Personal Tax rate!

If we look at this in a bit more detail, if you are a company car driver you would calculate your car tax as follows:

1: The price you pay for the car when you buy it from uk car discount is not the figure that goes on your P11D, the key figure is the list price of the vehicle if purchased from the manufacturer.

2: The next important piece of information is the Company Car Tax Rate which is determined from taking the cars official CO2 rating and looking at the sliding scale listed on the HM Revenue and customs website: http://www.hmrc.gov.uk/cars/ and this will give you the company car tax rate for your vehicle.

3: Multiply the two figures by personal tax rate you pay which presently runs at 20% for income up to £34,370 and 40% for income from £34,370 up to £150,000.

So to Summarise, you take the List price of the car, check the CO2 rating on the HM Revenue and customs website and then multiply by your personal tax rate.

e.g. (Retail Cost of New Car) x (Car Tax Rate) x (Personal Tax Rate)

If you are thinking of buying a new car and wish to talk to us about the company car tax on your vehicle then call uk car discount on 0161 946 3500 and we will be happy to help.