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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 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
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 Mileage Rates
Rates from 1 June 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.
Engine Size
Petrol
LPG
1400cc or less
11p
7p
1401cc - 2000cc
14p
9p
Over 2000cc
22p
14p
     
Engine Size
Diesel
 
1600cc or less
10p
 
1601cc - 2000cc
11p
 
Over 2000cc
13p
 

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