Vehicle Benefits


Chargeable on employees earning £8,500 or over (including benefits), and directors.

Car Benefit

The taxable benefit is calculated as a percentage of the list price of the car, on the day before it was registered, plus certain accessories. The percentage depends upon the rate at which the car emits carbon dioxide (CO2), and the fuel type.

You can find the appropriate percentage for 2018/19 using the following table.

CO2 emissions Appropriate percentage
(g/km) 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 - 184 37 37
185 - 189 37 37
190 and above 37 37

CO2 emission information

For cars registered from March 2001, the definitive CO2 figure used to calculate company car tax will be that shown on the car's V5 (Registration Document). The Vehicle Certification Agency (VCA) supplies CO2 (and other emissions) data. Information on CO2 emissions for both new (unregistered) and used (registered) cars can be found here.

Cars registered before 1 January 1998

Reliable emissions data is not widely available for cars registered before 1 January 1998.

Taxable percentages regardless of fuel type for cars registered before 1 January 1998

Engine capacity Taxable %
Up to 1400cc 15%
1401 - 2000cc 22%
Over 2000cc 32%

Car fuel benefits

The taxable car fuel benefit, for 2018/19, is calculated by applying the CO2 based car benefit percentage to the car fuel benefit charge multiplier of £23,400.

If the employee pays for the full cost of all fuel for private journeys (usually including home to work) there will be no car fuel benefit. In all other cases the full tax charge will be due.

HMRC advisory mileage rates from 1 March 2017 for employee private mileage reimbursement or employer reimbursement of business mileage in company cars are:

Fuel-only mileage rates for petrol and LPG

Engine Size Petrol LPG
1400cc or less 12p 8p
1401cc - 2000cc 15p 10p
Over 2000cc 22p 15p

Fuel-only mileage rates for diesel

Engine Size Diesel
1600cc or less 10p
1601cc - 2000cc 12p
Over 2000cc 14p

Rates from 1 December 2018 and are subject to change. Note the advisory fuel rates are revised in March, June, September and December. Please contact us for any updated rates.

Company vans

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 emission vans is £1,340. There is no fuel benefit for such vans.

Van and fuel charge
Tax Type Van Fuel Total
Tax (20% taxpayer) £670 £126 £796.60
Tax (40% taxpayer) £1,340 £253.20 £1,593.20
Tax (45% taxpayer) £1,507.50 £284.85 £1,792.35
Employer's Class 1A NICs £462.30 £87.35 £549.65


(Source: www.certax.co.uk)