21.2.2012 QUALEC tax rates to be abolished in April
The Qualifying Low Emission Car Category (QUALEC) is due to be removed from April 6th 2012, resulting in an increase in company car tax for some employers and drivers of company cars.
The definition of a QUALEC is a car that has been registered after January 1st 1998 that has CO2 emissions that do not exceed a statutory limit for the tax year – currently 120 g/km.
Company car tax for such cars is currently 10% for 2011/12, with the exception of cars with CO2 below 75 g/km, for which the relevant percentage is 5%. Cars with zero emissions currently have no charge, and there is a 3% surcharge for diesel vehicles.
From April 6th 2012, the QUALEC category will be removed, resulting in an increase in the Benefit-in-Kind (BIK) rate for cars with CO2 emissions between 100 and 120 g/km, as shown in Next Green Car's Company Car Tax table. This scale charge is set to increase further from 2013/14, with bands 76 to 99 g/km upwards seeing a 1% increase.
Employers will also see an increase in Class 1A National Insurance costs on a scale charge of cars with CO2 between 100 and 120 k/km, as a result of an increase in the relevant percentage used to calculate the charge, as it is all dependent on CO2.
To find out how BIK rates are calculated and also what changes are planned in April 2012 and 2013, visit our section on Company Car Tax.
Next Green Car
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