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.
|Petrol %||Diesel %|
|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:
- the car’s V5 registration document
- your dealer
- current data pages of car magazines
- the Vehicle Certification Agency
- Society of Motor Manufacturers and Traders
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.