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 %
Petrol Diesel
0-50 5 8
51-75 9 12
76-94 13 16
95-99 14 17
100-104 15 18
105-109 16 19
110-114 17 20
115-119 18 21
120-124 19 22
125-129 20 23
130-134 21 24
135-139 22 25
140-144 23 26
145-149 24 27
150-154 25 28
155-159 26 29
160-164 27 30
165-169 28 31
170-174 29 32
175-179 30 33
180-184 31 34
185-189 32 35
190-194 33 36
195-199 34 37
200-204 35
205-209 36
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.