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 (£23,400).

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.

Company van benefit is generally not related to CO2 emissions but is a set figure of £3,350 with an extra £633 where fuel for private use is provided. Van benefit charge for zero emissions vans £1,340.

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

Apropriate %
Petrol

Apropriate %
Diesel

0-50

13

135-139

          28

       32

51-75

16

20

140-144

          29

       33

76-94

19

23

145-149

          30

       34

95-99

20

24

150-154

          31

       35

100-104

21

25

155-159

          32

       36

105-109

22

26

160-164

          33

       37

110-114

 23

27

165-169

          34

       37

115-119

24

28

170-174

          35

       37