Company Cars and Vans

 

These are taxable benefits generally arise on employees earning £8,500 or over (including benefits) and directors. 

 

Company car benefit is calculated as a percentage (based on the car’s CO2 emissions rounded down to the next multiple of 5) of the car’s UK list price.

Company car fuel benefit is charged unless the cost of all fuel for private use is borne by the employee. The taxable benefit is calculated by applying the appropriate percentage to £22,100.

Where VAT is to be reclaimed on fuel for private use, the employer also has to account for output tax based on a fuel scale charge derived from the vehicle’s CO2 emissions (see table below).

Company van benefit is not related to CO2 emissions but is a set figure of £3,150 with an extra £594 where fuel for private use is provided. Van benefit charge for zero emissions vans £630.

Mileage rates for employees using their own cars for business:
approved rates are 45p per mile for the first 10,000 miles and 25p thereafter. Income tax and NICs may be due on higher rates and tax relief may be due on lower rates.

CO 2
in g/km

Apropriate %
Petrol

Apropriate %
Diesel

CO2
in g/km

Apropriate %
Petrol

Apropriate %
Diesel

0-50

5

8

150-154

25

28

51-75

9

12

155-159

26

29

76-94

13

16

160-164

27

30

95-99

14

17

165-169

28

31

100-104

15

18

170-174

29

32

105-109

16

19

175-179

30

33

110-114

17

20

180-184

31

34

115-119

18

21

185-189

32

35

120-124 19 22 190-194 33 36
125-129 20 23 195-199 34  
130-134 21 24 200-204 35  
135-139 22 25 205-209 36 37
140-144 23 26 210 and above 37  
145-149 24 27