2017/18 Company Cars and Vans

Company car benefit is calculated by applying the appropriate percentage (based on the car's CO2 emissions – see table below) to the car’s UK list price.

CO2 emissions (g/km) Appropriate %
Petrol Diesel
0-50 9 12
51-75 13 16
76-94 17 20
95-99 18 21
100-104 19 22
105-109 20 23
110-114 21 24
115-119 22 25
120-124 23 26
125-129 24 27
130-134 25 28
135-139 26 29
140-144 27 30
145-149 28 31
150-154 29 32
155-159 30 33
160-164 31 34
165-169 32 35
170-174 33 36
175-179 34 37
180-184 35
185-189 36
190 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 (£22,600).

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 generally not related to CO2 emissions but is a set figure of £3,230 with an extra £610 where fuel for private use is provided. Van benefit charge for zero emission vans £646.

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.