Company car drivers choosing a new vehicle in the coming months need to consider planned tax rule changes if they are to avoid being left out of pocket, says James Shires, National Corporate Sales Operations Manager at Volvo Car UK.
Under current legislation, the lowest Benefit in Kind (BIK) tax band is available to cars that emit less than 120g/km CO2. The new rules, set to be introduced from April 2012, will see that threshold cut to just 99g/km - increasing BIK tax costs for company car drivers.
The changes mean a driver opting for a car with sub-120g/km emissions over a typical three-year contract will be hit by a higher tax bill when the new legislation takes effect. For a driver getting a new car in the first quarter of 2011, that could potentially mean significantly higher costs in the second and third year with the vehicle.
However, three new 99g/km CO2 DRIVe models from Volvo can help company car drivers avoid paying any more tax without sacrificing comfort, practicality or driving enjoyment. DRIVe versions of the Volvo C30 hatchback, Volvo S40 saloon and Volvo V50 sportswagon emit just 99g/km CO2, and as such will remain in the lowest tax band for diesel models even after the tax changes.
Better still, following the announcement of new legislation, these DRIVe models will also be exempt from the London Congestion Charge from 4th January 2011 - a double saving for company car drivers spending time in the Capital.
James Shires, National Corporate Sales Operations Manager at Volvo Car UK, said: "Company car drivers making a decision about their next car now, need to consider these forthcoming BIK tax changes, or know that they could potentially be missing out financially over the life of the contract.
"The C30, S40 and V50 DRIVe will be unaffected by the new rules thanks to CO2 emissions of just 99g/km, which ensure they will remain in the lowest tax band for diesel company car drivers."
Better still, unlike some rival brands, choosing a DRIVe model doesn't mean sacrificing equipment levels, comfort or kerb appeal. Volvo offers its DRIVe cars in a range of trim levels - ensuring they appeal as much to the heart as to the head.
James added: "Choosing a low-emission car shouldn't be a compromise. With DRIVe, motorists can benefit from lower tax bills, while enjoying a spacious, practical car, and still specify luxury items like leather upholstery and a high-end stereo if they want to."
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