MAZDA HELPS COMPANIES MAKE ALLOWANCES TO SAVE MONEY IN 2009

Companies in Brighton that choose to run low emission company cars stand to benefit from significant new tax breaks, which are being introduced this year.

 

Changes to capital allowances for company cars mean that from 1 April 2009 they will be based on carbon dioxide emissions and will reward companies for running vehicles that emit 160g/km of CO₂ or less.

 

Mazda is perfectly placed to help companies meet this challenge, with more than 40 individual model variants producing less than the 160g/km benchmark from its Mazda2, Mazda3, Mazda5 and Mazda6 ranges.

This includes the all-new low emission 2.2-litre turbo diesel engine that arrives in the Mazda6 in three power derivatives in January 2009.

It is one of the quietest and most powerful engines in its class, offering 185ps, 163ps or 125ps, and all three meet the crucial 160g/km emissions benchmark in the saloon, hatchback or estate (see panel below).

Malcolm Hance, dealer principal at Rivervale Mazda in Brighton, said:  “Vehicle emissions should be an even greater focus for fleet decision-makers than they have been in the past with the forthcoming capital allowance changes.  Making the wrong decision could be extremely costly.

“Choosing Mazda models will offer the best of both worlds to companies and their drivers.  Companies will benefit from vehicles that make the most of the capital allowance changes, which also offer low running costs, great reliability and strong resale values.

“Meanwhile drivers will pay low benefit-in-kind tax and get to drive some of the best looking cars on the road, which offer a very high standard of equipment, great economy, exceptional handling and market-leading comfort levels.

“The capital allowance tax burden should be part of every fleet decision-makers’ total cost of ownership equation to ensure vehicle operating costs are kept as low as possible, benefiting the business as well as drivers.  Mazda can help achieve that business aim.”

The important 160g/km emissions target will affect all company cars that are registered after 1 April 2009, whether they are outright purchased or leased by companies.

For outright purchased vehicles, cars with CO₂ emissions above 160g/km will only receive an annual 10% writing down allowance - the value of the car companies can offset against their profits to reduce their tax bill.

However, for vehicles with CO₂ emissions of 160g/km or less, companies will be able to claim a 20% writing down allowance to reduce their tax bill even more.

For companies that lease their vehicles, there is similar system.  Companies can offset all of the value of the lease against their profits if the vehicle emits 160g/km or below, but if it has higher CO₂ emissions, then firms can only claim 85% of the value of the lease (there is a 15% disallowance).

The British Vehicle Rental and Leasing Association predicts that the changes will accelerate the shift to low-emission cars that was kick-started by the launch of            CO₂-based company car tax in 2002.

Leasing companies, which own the vehicles that thousands of fleets hire, will also be affected by the new rules and some have warned that the changes will see rentals for cars emitting more than 160g/km rise by up to £30 a month, while monthly contract hire rates for low emission cars could fall.

To find out how Mazda can cut the cost of corporate motoring, please call Rivervale Mazda on 01273 707007 or visit the showroom at Victoria Road, Brighton.