THE ALL-NEW VOLVO XC90
T8 TWIN ENGINE

The tax-efficient plug-in petrol hybrid

With CO2 emissions of just 49g/km, the all-new Volvo XC90 T8 Twin Engine offers business owners and company car drivers a unique combination of luxury, economy and tax-efficiency.

HOW THE VOLVO XC90 T8 TWIN ENGINE CAN REDUCE YOUR TAX BILL THIS YEAR BY £11,0911

Car purchased	On the road price	Government Plug-In Car Grant	Purchase price	Writing down allowance		Corporation tax relief	Corporation tax relief
				(%)	(£)
T8 Twin Engine Momentum	£60,455	£5,000	£55,455	100%	£55,455	20%	£11,091
T8 Twin Engine R-Design	£63,355	£5,000	£58,355	100%	£58,355	20%	£11,671
T8 Twin Engine Inscription	£64,205	£5,000	£59,205	100%	£59,205	20%	£11,841
Competitor car over75g/km CO₂	£60,000	n/a	£60,000	18% per annum	£10,800**	20%	£2,160

If you lease the Volvo XC90 T8 Twin Engine and pay, for example, £1,000† (+VAT) per month, you can offset £1,100 (£1,000 plus blocked VAT***) against your company’s taxable profits.

† Monthly rental for demonstration purposes only. Visit www.volvocars.co.uk for latest business contract hire offers.

Further tax advantages of the XC90 T8 Twin Engine

			BIK rate
Model variant	P11D Value****	CO2 Emissions	2015/2016	2016/2017	2017/2018
XC90 T8 Twin Engine Momentum	£60,400	49g/km	5%	7%	9%
Competitor SUV	£60,400	149g/km	27%	26%	28%

			Class 1A NIC
Model variant	P11D Value****	CO2 Emissions	2015/2016	2016/2017	2017/2018
XC90 T8 Twin Engine Momentum	£60,400	49g/km	£416.76	£583.46	£750.17
Competitor SUV	£60,400	149g/km	£2,250.50	£2,167.15	£2,333.86

			Class 1A NIC
Model variant	P11D Value****	CO2 Emissions	2015/2016	2016/2017	2017/2018
XC90 T8 Twin Engine Momentum	£60,400	49g/km	£1,208	£1,691.20	£2,174.40
Competitor SUV	£60,400	149g/km	£6,523.20	£6,281.60	£6,764.80

Added to the 100% first year allowance, this year the XC90 T8 Twin Engine also attracts an incredibly low Benefit-in-Kind (BIK) rate of just 5%, thanks to its ultralow CO2 emissions.

This further reduces the company’s Class 1A National Insurance Contributions (NIC), as well as helping to minimise the company car tax paid by the driver of the car.

Class 1A National Insurance Contributions

Class 1A NICs are payable on benefits provided to directors and employees of a business who earn at a rate of more than £8,500 a year, including taxable benefits and expenses.

The amount the company has to pay is based on the following formula:
List price (P11D value) x BIK rate x 13.8% (flat rate for employer’s NIC)

With a 5% BIK for 2015/16 the Class 1A NIC for the XC90 T8 Twin Engine Momentum is just £416.76^

Company Car Tax

Directors or employees who privately use a company car must also pay company car tax, commonly known as BIK tax. Using a similar calculation to that used for Class 1A NIC the tax due is calculated as:

List price (P11D value) x BIK rate x income tax rate of the driver^^

With a 5% BIK for 2015/16 the BIK tax payable by a 40% taxpayer for the XC90 T8 Twin Engine Momentum is just £1,208^

The all-new XC90 is Volvo’s most luxurious and technologically advanced model ever. Lauded by critics and drivers alike, it was named 2015 Auto Express Car of the Year, and has picked up a host of awards around the world.

With the launch of the new T8 Twin Engine version, the all-new XC90 adds outstanding value and tax efficiency; delivering unprecedented levels of luxury with a number of previously unattainable tax and cost advantages:
• 100% first year allowance
• 5% BIK
• £5,000 Government plug-in car grant
• 100% London Congestion Charge discount
• 134.5 mpg combined fuel consumption
• 49g/km CO2 emissions

* Based on a purchase price of £55,455, after deduction of Government plug-in car grant, and a corporation tax rate of 20%.

** Writing down allowance calculated on a reducing balance basis starting with the purchase price.

*** On a rental of £1,000 the input VAT is £200, but only £100 may be reclaimed because a 50% VAT block is applied.

**** P11D value assumed to be the same as the on the road price.

^ Based on a P11D value of £60,400.

^^20% for taxable income up to £31,785; 40% for taxable income from £31,786 to £150,000; 45% for taxable income above £150,000).

FOR MORE INFORMATION, CONTACT
THE VOLVO CAR BUSINESS CENTRE
ON 0345 600 4027
[email protected]