Chargeable on directors and employees.
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:
|Petrol %||Diesel %|
|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).
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 – amount per mile||LPG – amount per mile|
|1400cc or less||11 pence||7 pence|
|1401cc to 2000cc||14 pence||8 pence|
|Over 2000cc||22 pence||13 pence|
|Engine size||Diesel – amount per mile|
|1600cc or less||9 pence|
|1601cc to 2000cc||11 pence|
|Over 2000cc||13 pence|
|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|