Company Cars and Vans

 

 

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