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 % to the car fuel benefit charge multiplier (£22,600).

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

Company van benefit is generally not related to CO2 emissions but is a set figure of £3,230 with an extra £610 where fuel for private use is provided. Van benefit charge for zero emissions vans £646.

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

         9

     12

150-154

          29

       32

51-75

       13

     16

155-159

          30

       33 

76-94

       17

     20

160-164

          31

       34

95-99

       18

     21

165-169

          32

       35

100-104

       19

     22

170-174

          33                              

       36

105-109

       20

     23

175-179

          34

       37

110-114

       21

     24

180-184

          35 

       37

115-119

       22

     25

185-189

          36

       37

120-124        23      26     190           37        37
125-129        24      27 and above                   37
130-134         25      28                     37
135-139        26      29            37
 140-144        27      30            37
145-149        28      31            37