2015/16 Company Cars and Vans
These taxable benefits generally arise on employees earning £8,500 or over (including benefits) and directors. Company car benefit is calculated by applying the appropriate percentage (based on the CO2 emissions – see table below) to the car’s UK list price.
|CO2 emissions (g/km)||Appropriate %|
|210 and above||37|
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 multipler (£22,100).
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.
Company van benefit is not related to CO2 emissions but is a set figure of £3,150 with an extra £594 where fuel for private use is provided. Van benefit charge for zero emission vans £630.
Employees using their own cars for business: Approved mileage 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.