Vehicle Benefits
Chargeable on directors and employees.
Car Benefit
The taxable benefit is calculated as a percentage of the list price of the car, on the day before it was first registered, plus certain accessories. This 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 (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 | |
| 170-174 | 35 | |
| 175-179 | 36 | |
| 180 and above | 37 | |
The diesel supplement is increased from 3% to 4% from 6 April 2018, although the maximum fuel rate remains at 37% (unless the car is registered on or after 1 September 2017 and meets the Euro 6d emissions standard).
Car fuel benefit
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 percentage to the car fuel benefit charge multiplier, which is £23,400 in 2018/19.
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.
Fuel-only advisory rates
| Engine Size | Petrol | Diesel | Gas |
|---|---|---|---|
| Up to 1400cc | 11p | 9p | 7p |
| 1401cc - 1600cc | 14p | 8p | |
| 1601cc to 2000cc | 11p | ||
| Over 2000cc | 22p | 13p | 13p |
| Rates from 1 March 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 | Van £ | Fuel £ | Total £ |
|---|---|---|---|
| Tax (20% taxpayer) | £670.00 | £126.60 | £796.60 |
| Tax (40% taxpayer) | £1,340.00 | £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 |