Basically if a car emits 110g/km CO2 or less any company that buys it can offset 100% of the cost against one year’s turnover for tax
purposes. If you have the car as your company car you then have to pay BIK tax on it based on CO2 and list price. Prior to 31-3-2008 the CO2 limit was 120g/km, and I took advantage of that a couple of weeks before the deadline. £9,500 less taxable income for my company, and I’ll pay about £450 in tax. Less than 100g/km puts a company driver in a very favourable tax position, and, of course, a hybrid is London Congestion Tax exempt.