Company car benefit is calculated by applying the appropriate percentage (based on the car’s CO2 emissions – see the table below) to the car’s UK list price.

CO2 emissions
(g/km)
Appropriate percentage
Petrol % Diesel %
0-50 13 17
51-75 16 20
76-94 19 23
95-99 20 24
100-104 21 25
105-109 22 26
110-114 23 27
115-119 24 28
120-124 25 29
125-129 26 30
130-134 27 31
135-139 28 32
140-144 29 33
145-149 30 34
150-154 31 35
155-159 32 36
160-164 33 37
165-169 34 37
170-174 35 37
175-179 36 37
180 and above 37 37

Diesel cars that are registered on or after 1 September 2017 and meet the Euro 6d emissions standard are exempt from the 4% supplement.

How to find out how much CO2 your company car emits – see:

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 %age 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 vehicles CO2 emissions.

Company van benefit is 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 emission vans is £1,340.

Employees using their own cars for business: Approved milage 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 available on lower rates.