2016/17 Company Cars and Vans

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 7 10
51-75 11 14
76-94 15 18
95-99 16 19
100-104 17 20
105-109 18 21
110-114 19 22
115-119 20 23
120-124 21 24
125-129 22 25
130-134 23 26
135-139 24 27
140-144 25 28
145-149 26 29
150-154 27 30
155-159 28 31
160-164 29 32
165-169 30 33
170-174 31 34
175-179 32 35
180-184 33 36
185-189 34 37
190-194 35
195-199 36
200 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 (£22,200).

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 £3,170 with an extra £598 where fuel for private use is provided. Van benefit charge for zero emission vans £634.

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.