Tax Information Vehicle Benefits
Please select an option:
- Income Tax
- Corporation Tax
- Value Added Tax
- Vehicle Benefits
- NI Contributions
- Pension premiums
- Charitable giving
- Some useful rates
- Government tax spending
- Capital gains Tax
- Main capital Allowances
- Inheritance Tax
- Mileage Allowances
- Key dates and deadlines
- Profit related pay
- Savings and investments
- Stamp Duties
Car Benefit
The tax you pay on your company car is governed by four factors:
- the list price of the car, on the day before it was first registered, plus certain accessories
- the rate at which the car emits carbon dioxide (CO2)
- the fuel type, (for most types of car, this is all the information you need to work out the taxable benefit)
- your highest rate of income tax.
You can find your taxable percentage for 2003/04 using the following table:
| CO2 in g/km |
Taxable % | |
|---|---|---|
| Petrol | Diesel | |
| Less than 160 | 15% | 18% |
| 160 to 164 | 16% | 19% |
| 165 to 169 | 17% | 20% |
| 170 to 174 | 18% | 21% |
| 175 to 179 | 19% | 22% |
| 180 to 184 | 20% | 23% |
| 185 to 189 | 21% | 24% |
| CO2 in g/km |
Taxable % | |
|---|---|---|
| Petrol | Diesel | |
| 190 to 194 | 22% | 25% |
| 195 to 199 | 23% | 26% |
| 200 to 204 | 24% | 27% |
| 205 to 209 | 25% | 28% |
| 210 to 214 | 26% | 29% |
| 215 to 219 | 27% | 30% |
| 220 to 224 | 28% | 31% |
| CO2 in g/km |
Taxable % | |
|---|---|---|
| Petrol | Diesel | |
| 225 to 229 | 29% | 32% |
| 230 to 234 | 30% | 33% |
| 235 to 239 | 31% | 34% |
| 240 to 244 | 32% | 35% |
| 245 to 249 | 33% | 35% |
| 250 to 254 | 34% | 35% |
| 255 and over | 35% | 35% |
How to find out how much CO2 your company car emits — see:
- the car’s V5 registration document
- your dealer
- the data pages of car magazines (current models)
- the Vehicle Certification Agency
- the website of the Society of Motor Manufacturers and Traders
Reliable emissions data is not widely available for cars registered before 1 January 1998. For them, the following taxable percentages apply, regardless of fuel type:
| Engine Capacity | Taxable % |
|---|---|
| Up to 1400cc | 15% |
| 1401 – 2000cc | 22% |
| Over 2000cc | 32% |
Remember, too, that the rate of the taxable benefit will rise next year — for the comparative rates, simply deduct 10 from all the CO2 figures in the table — and may well rise again in 2005.
Van Benefit
| Van under 4 years old | Van 4 years old, or over | |
|---|---|---|
| Benefit per vehicle | £500 | £350 |
Car fuel benefits
If the employee pays for the full cost of all fuel for private journeys (usually including home to work) there will be no car fuel benefit. In all other cases the full tax charge will be due.
The taxable car fuel benefit is, for 2003/04, calculated by multiplying £14,400 by the same percentage as applies (or would apply) for the car benefit.
Example: A company car driver has a car which, on the day before it was first registered, had a list price of £18,000. It runs on petrol, and emits 182 g/km of CO2.
If we assume the driver pays tax at 40%, the annual tax bill on the car is: £18,000 × 20% × 40% = £1,440
If the employer provides any fuel used for private journeys and is not re-imbursed for the cost, the 2003/04 tax bill for the fuel is: £14,400 × 20% × 40% = £1,152.
Did you know?
That the government will be raising £23 billion from fuel duties - that's almost £24,000 a minute!
2003 and Beyond
It has been announced that:
The point at which the taxable percentage rises above 15% will be reduced for 2004/05 from 159 to 149. The maximum 35% taxable benefit will apply as follows:
| Petrol | Diesel | |
|---|---|---|
| 2004/05 | 245 and over | 230 and over |