How To Get Your Company Car 4% Cheaper In 2018!
Do you know about RDE2?
POSTED BY JONATHAN VOWLES ON 06/03/2018 @ 8:00AM
Are you a company car driver? Do you have a diesel car? Do you know about RDE2? If you don't, then you need to find out more. Maybe you are planning to change your company car this year? If so, read on ...
Whatever company car you choose, you could get it 4% cheaper!
copyright: niserin / 123rf stock photo (licensee)
If you drive a diesel company car, then you need to know about RDE2. What is it you might ask? OK, blame all this on dodgy car company software and prepare yourself for a boring yet essential alert!
"Quite simply, RDE2 stand for Real Driving Emissions Step 2 Standard!"
It is a real driving (as opposed to Laboratory driving) emissions test. It was introduced by the UK Government in September 2017 and it is currently an optional test that motor manufacturers can put their vehicles through. From September 2019 it will become a mandatory test.
If you are a company car driver and you have a diesel car, then having a vehicle that meets the RDE2 standard means that you pay less company car tax. You will get a 4% reduction in the benefit in kind starting from April 2018.
For example, if your car has a list price of £30,000 and CO2 emissions of 119gm CO2, then as a standard diesel, your benefit in kind for 2018/19 will be £8,400 whereas an RDE2 compliant diesel would be £7,200.
"A reduction of £1,200 in the benefit in kind charge!"
Of course, a diesel car may not be the best, and you might like to think of getting a petrol, hybrid or all-electric one instead. In which case, let me help you with the decision.
If you are thinking of changing company cars and want to know the company car tax charges, then email me about the car or cars you are thinking of, making sure to include the list price and CO2 emissions and (if it is hybrid or all-electric, its battery only range) and we will email back a calculation of your company car tax over the next 3 years.
"Would you like to know more?"
So get in touch with me on 01234 752 566 or click here to ping me an email for your free company car tax calculation and let's see how I can help you.
Until next time ...
If your company has a fleet of cars, big or small, then contact us to review company car planning for your business as a whole!
If you're looking for a new accountant to help grow your business, do visit www.jvca.co.uk and discover how Jonathan Vowles Chartered Accountants can help you!
I've been an accountant in and for business since 1987 and have a wide experience of consultancy, audit, accounts, taxation and wealth planning work from individuals and small businesses to multinational corporations and charities.
My eclectic interests in growing and developing business span a number of areas … and can be summarised as strategic business advice and tax saving advice.
I have worked with the Chamber of Commerce to deliver courses for people about starting up in business and have lectured about tax for a major accountancy practice and for Milton Keynes College.
I relax by reading fiction and by getting away from the office in a campervan.