The case for your company buying a "QUALEC"?

[Fred Bloggs]

I thought there may have been more about the "QUALEC" rules and company cars in the budget. But maybe not. However, is there now a case for buying a fairly cheap QUALEC vehicle and running it as a company car?

I understand you get a 100% right down in year one on the value against corporation tax?

Maybe you get a kick back on some of the VAT too?

If I buy a new one every year from 08/09 onwards, part exchanging one QUALEC for another am I onto a winner?

Downsides are increased employers NI and increased income tax, no longer able to claim 40p/25p.

Upside is insurance and running costs paid by pre-tax company income?

Whaddya reckon?

[Cheshire Cat]

WTF is a QUALEC?

[Fred Bloggs]

WTF is a QUALEC?

Beg your pardon, they were mentioned here the other day. A "qualifying low emission car".

[dude69]

But QUALECs aint what they used to be.

Not sure the date, I guess April 6th, but the CO2 is going from 120g down to 110g.

Government keep moving the goalposts, very unfair for manufacturers.

Anyway, that rules out 80-90% of previously qualifying cars

There are only 13 cars left:

PETROL:
three hybrids:

Honda Insight
Toyota Prius 1,497cc E-CVT
Honda Civic Hybrid 1,339cc CVT

three versions of same 1-litre crudmobile:

Citroen C1 998cc 5-spd manual
Toyota Aygo 998cc 5-spd manual or autoclutch
Peugeot 107 998cc 5-spd manual or autoclutch

DIESEL:

SEAT Ibiza Ecomotive
VW Polo Bluemotion
KIA Eco Cee'd 1.6 diesel
Mini Cooper 1.6 Diesel
MINI Clubman 1.6 Efficient Dynamics diesel
Citroen C1 1,398cc
Toyota Aygo 1,398cc
Skoda Fabia Greenline 1.4TDI
Skoda Fabia Greenline 1.4TDI estate
Renault Clio 1.5 dCi65
Renault Clio 1.5 dCi80
Renault Clio 1.5 dCi100

[shelby68]

But QUALECs aint what they used to be.

Not sure the date, I guess April 6th, but the CO2 is going from 120g down to 110g.

Government keep moving the goalposts, very unfair for manufacturers.

Anyway, that rules out 80-90% of previously qualifying cars

There are only 13 cars left:

PETROL:
three hybrids:

Honda Insight
Toyota Prius 1,497cc E-CVT
Honda Civic Hybrid 1,339cc CVT

three versions of same 1-litre crudmobile:

Citroen C1 998cc 5-spd manual
Toyota Aygo 998cc 5-spd manual or autoclutch
Peugeot 107 998cc 5-spd manual or autoclutch

DIESEL:

SEAT Ibiza Ecomotive
VW Polo Bluemotion
KIA Eco Cee'd 1.6 diesel
Mini Cooper 1.6 Diesel
MINI Clubman 1.6 Efficient Dynamics diesel
Citroen C1 1,398cc
Toyota Aygo 1,398cc
Skoda Fabia Greenline 1.4TDI
Skoda Fabia Greenline 1.4TDI estate
Renault Clio 1.5 dCi65
Renault Clio 1.5 dCi80
Renault Clio 1.5 dCi100

None of which you'd be seen dead in (although the dashboard display of all the eco friendly stuff in the Prius is pretty cool in a geeky kind of way)

[Fred Bloggs]

Thanks, I hadn't seen the reduction in CO2 required to qualify as a "QUALEC". I'm certainly not a car snob. It's just a way of getting from A to B. A Mini would make a reasonable commuter car for me. But would it make sense as a company asset rather than a personal asset? I'm undecided but my fag packet sums say that the balance might be in favour of running one as a company asset overall. Buy one each year and offset your corporation tax?

[sidknows]

do we know what the bik charge on these qualec cars are ?

i believe we can also claim business mileage as long as we do not claim any personal fuel -- ridiculously low rates but its still something

[Sockpuppet]

140 - co2/km

Divide that by 5


Add 16 for petrol and 18 for diesel.

That is the % of the list price that is BIK i.e. on a £10k list car and 20% you pay tax of a bik of £2k. so about £400 ish if you are 20% taxed.

[Fred Bloggs]

Rules for QUALECS are different. As i understand it, for Petrol QUALECS the BIK is 10% of list price and for Diesels it is 13%. You also get a 100% write down against the capital cvost in year 1. That's why I think it might be worth buying one each year.

[KevinS]

But QUALECs aint what they used to be.

Not sure the date, I guess April 6th, but the CO2 is going from 120g down to 110g.

Not according to this HMRC page.. It says 2008/09 is still 120g for a car to qualify as a QUALEC..