Company Cars and Vans - PW Accountants Ltd.

Company car benefit is calculated applying the appropriate percentage (based on the car’s CO2 emissions – see table below) to 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 £22,200. 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 £3,170 with an extra £598 where fuel for private use is provided. Van benefit charge for zero emissions vans £634.
Mileage rates for employees using their own cars for business: Approved mileage allowance payments are 45p per mile for the first 10,000 miles in the tax year and 25p thereafter. Income tax and NICs may be due on higher rates and tax relief may be avaliable on lower rates.
CO 2 in g/km	Apropriate % Petrol	Apropriate % Diesel	CO2 in g/km	Apropriate % Petrol	Apropriate % Diesel
0-50	7	10	150-154	27	30
51-75	11	14	155-159	28	31
76-94	15	18	160-164	29	32
95-99	16	19	165-169	30	33
100-104	17	20	170-174	31	34
105-109	18	21	175-179	32	35
110-114	19	22	180-184	33	36
115-119	20	23	185-189	34	37
120-124	21	24	190-194	35	37
125-129	22	25	195-199	36	37
130-134	23	26	200 and above	37	37
135-139	24	27
140-144	25	28
145-149	26	29