Vehicles
Petrol and Diesel Company Car Benefit
The taxable benefit is calculated as a percentage of the car's UK list price. The calculation begins with the car's CO emissions in grams per kilometre. Then deduct 130 and divide this result by 5. Round down (4.9 = 4) and then add 15 (petrol) or 18 (diesel). The result is the taxable percentage.
Petrol |
Diesel |
|
| Minimum rate* | 15% |
18% |
| Maximum rate | 35% |
35% |
* Special rules apply for some environmentally-friendly cars.
For cars registered before 1 January 1998 speical rules apply.
Chargeable on employees earning £8,500 or over (including benefits) and directors. The list price relates to the day before first registration and includes accessories. The price is subject to an upper limit of £80,000. The list price is reduced by the employee's capital contribution subject to a maximum deduction of £5,000. Special rules apply to cars at least 15 years old with a market value of £15,000 or more. Van, no benefit if restricted private use condition met; otherwise van benefit £3,000, fuel £550. Payments by employees for private use may reduce the above benefits.
HM Revenue & Customs Mileage Rates
Employees using their own car for business: approved rates are 40p per miles for the first 10,000 miles and 25p thereafter. Income tax and NICs may be due on higher rates and tax relief may be due on lower rates.
Company cars: from time to time HMRC publish advisory fuel rates which apply where employees are reimbursed for business travel or are required to repay the cost of fuel for private travel
Company Car Fuel Benefit: Where the cost of all fuel for private use is borne by the employee, the fuel benefit is nil. Otherwise the taxable benefit is calculated as the car benefit percentage (see above) of £18,000. VAT is payable by the business by reference to the CO2 emissions (rounded down to next multiple of 5 as follows:
VAT fuel scale charges for 3 month return period beginning on/after 1 May 2010
CO2 in g/km |
Scale Charge £ |
CO2 in g/km |
Scale Charge £ |
CO2 in g/km |
Scale Charge £ |
| 120 or less | 141 | 160 | 297 | 190 | 397 |
| 121 to 135 | 212 | 165 | 312 | 200 | 411 |
| 135 | 227 | 170 | 326 | 205 | 425 |
| 140 | 241 | 175 | 340 | 210 | 439 |
| 145 | £34.85 | 180 | 354 | 215 | 454 |
| 150 | £36.94 | 185 | 368 | 220 | 468 |
| 155 | £39.02 | 190 | 383 | 225 | 482 |
| 230 and over | 496 |
