Benefit In Kind

Company car tax on the Outlander PHEV

Financial benefits for company car drivers

Company car drivers using the Mitsubishi Outlander PHEV for business can look forward to an increase in their pay packet equal to an average of over £4,000 every year.

Low emissions, low company car tax

Thanks to the Outlander PHEV’s Intelligent Technology it is able to achieve ultra-low emissions of just 44g/km, so it qualifies for a reduced rate of BIK (benefit-in-kind) taxation.

A fraction of the cost

Company car drivers choosing the Outlander PHEV will pay just 5% tax as BIK compared to the 25% or more that most business users will pay. To find out more about the money you could save check the chart below.

Not only will Outlander PHEV company car drivers be receiving a boost to their pay cheque but they’ll be benefiting from a staggering 148 mpg, exemption from Road Tax and if they’re making a commute of less than 30 miles they’ll be able to make their journey to and from work for just pennies.

Financial benefits for companies

If you’re looking to upgrade or even implement a fleet of company cars then the Mitsubishi Outlander PHEV has the potential to save your business thousands of pounds a year.

100% Capital Allowance

Because of its outstanding emission levels, a company purchasing an Outlander PHEV is able to write down 100% of the cost of the car against its profits chargeable for Corporation Tax in year one.

This is compared to a traditional company vehicle where a maximum of 18% per annum of the cost is allowable to write down against the profits chargeable for Corporation Tax. This is reduced to only 8% on vehicles with a CO2 level exceeding 130g/km.

This means that any business with even a small fleet of cars could save tens of thousands of pounds in Corporation Tax in the first year after purchase.

Reduced National Insurance Contribution

Not only will your business save money on Corporation Tax but there will also be a reduction in its associated Class 1a National Insurance Contributions.

Good news for employees

The PHEV’s ultra-low emissions of only 44g/km means that company car users driving the Outlander PHEV will benefit from a reduction in BIK tax payments down to just 5%.

Compared to other SUVs, The Outlander PHEV offers significant advantages for Benefit in Kind and fuel card tax ratings.

Similar sized SUVs typically have Benefit in Kind and fuel card tax rates of 30%. For an Outlander PHEV, they are 5%.

  Outlander PHEV
GX4h Auto
Honda CR-V
EX Auto
Xdrive SE Auto
Audi Q5
S-Line Plus Auto
Mercedes E-Class
SE Estate Auto
Cost of the car - P11d value £37,899 £33,995 £34,500 £39,215 £36,005
Government grant reduction £5,000 £0 £0 £0 £0
Adjusted final price £32,899 £33,995 £34,500 £39,215 £36,005
CO2 emissions g/km 44 180 138 156 140
Benefit in kind rate 5% 32% 23% 27% 24%
Vehicle benefit charge without fuel provided £758 £4,351 £3,174 £4,235 £3,456
Tax saving per year without fuel (40% taxpayer) - -£3,593 -£2,416 -£3,477 -£2,698
Vehicle benefit charge with fuel provided £1,192 £7,129 £5,170 £6,579 £5,539
Tax saving per year with fuel (40% taxpayer) - -£5,927 -£3,968 -£5,387 -£4,338

First-year allowances

Currently, there are 100 per cent first-year allowances (FYA) available for business expenditure on a new electric car, or a new, unused car with CO2 emissions up to 95g per km driven . This means you can claim the full cost on these assets as a deduction when calculating your taxable profit or loss for the accounting period that you spent the money.

Outlander PHEV on contract hire

GX3h only

per month + VAT