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 first registered, plus certain accessories. This 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
(g/km)
Appropriate percentage
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 advisory rates

Engine Size Petrol Diesel Gas
Up to 1400cc 11p 9p 7p
1401cc – 1600cc 14p 8p
1601cc to 2000cc 11p
Over 2000cc 22p 13p 13p
Rates from 1 March 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.

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