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Car Benefit

The car benefit is calculated by multiplying the car's list price, when new, by a percentage linked to the car's CO2 emissions.

For diesel cars generally add a 4% supplement (unless the car is registered on or after 1 September 2017 and meets the Euro 6d emissions standard) but the maximum is still 37%.

The list price includes accessories.

The list price is reduced for capital contributions made by the employee up to £5,000.

Special rules may apply to cars provided for disabled employees.

For cars registered before 1 January 1998 and cars with no agreed CO2 emissions the charge is based on engine size.

2018/19:

CO2 emissions (gm/km) 1% of car's list price taxed
0 to 50 9
51 up to 7516
76 up to 94 19
9520
10021
10522
11023
11524
12025
12526
13027
13528
14029
14530
15031
15532
16033
16534
17035
17536
180 and above37

2017/18:

CO2 emissions (gm/km) 1 % of car's list price taxed
0 to 50 9
51 up to 75 13
76 up to 94 17
95 18
100 19
105 20
110 21
115 22
120 23
125 24
130 25
135 26
140 27
145 28
150 29
155 30
160 31
165 32
170 33
175 34
180 35
185 36
190 and above 37

Note...

  1. Round down to nearest 5gm/km for values above 95

Car Fuel Benefit

Car fuel benefit applies if an employee has the benefit of private fuel for a company car.

The benefit is calculated by applying the percentage used to calculate the car benefit by a 'fuel charge multiplier'.

The charge is proportionately reduced if provision of private fuel ceases part way through the year. The fuel benefit is reduced to nil only if the employee pays for all private fuel.

Fuel charge multiplier: £23,400 (2017/18: £22,600)

Van Benefit

Van benefit is chargeable if the van is available for an employee's private use.

A fuel benefit may also be chargeable if an employee has the benefit of private fuel paid for in respect of a company van.

The charges do not apply to vans if a restricted private use condition is met throughout the year.

A reduced benefit charge may apply to vans which cannot emit CO2 when driven.

Van benefit: £3,350 (2017/18: £3,230)

Fuel benefit: £633 (2017/18: £610)

Advisory Fuel Rates for Company Cars

Advisory rates only apply where employers reimburse employees for business travel in a company car or require employees to repay the cost of fuel used for private travel in a company car. If the rate paid per mile of business travel is no higher than the advisory rate for the particular engine size and fuel type of the car, HMRC will accept that there is no taxable profit and no Class 1 NIC liability.

From 1 June 2018:

Petrol

Engine size (cc) Pence per mile
1400 or less 11
1401 to 2000 14
Over 2000 22

Diesel

Engine size (cc) Pence per mile
1600 or less 10
1601 to 2000 11
Over 2000 13

LPG

Engine size (cc) Pence per mile
1400 or less 7
1401 to 2000 9
Over 2000 14

Notes...

  1. Hybrid cars are treated as either petrol or diesel cars for this purpose.

Mileage Allowance Payments for Employees

Mileage Allowance Payments (MAPs) represent the maximum tax free mileage allowances an employee can receive from their employer for using their own vehicle for business journeys.

An employer is allowed to pay an employee a certain amount of MAPs each year without having to report payments to HMRC.

If the employee receives less than the statutory rate, tax relief can be claimed on the difference.

2018/19 and 2017/18:

Vehicle typePence per mile
Cars and vans

- up to 10,000 miles45
- over 10,000 miles25
Bicycles20
Motorcycles24