Company Car Tax
From April 2002 company car tax bandings have been based on a cars CO2 emission rating and the list price of the car. Basically, the higher the CO2 emissions, the higher the percentage of the list price of the vehicle you are taxed on. These bandings range from as little as 15% for the greenest cars available and increase by 20% to a maximum of 35% for those producing the most CO2. We have included a brief overview of these charges below.
| % of Car's List Price (P11d Value) | CO2 (g /km) 2008/9 |
|---|---|
| 10 | 120 & below* |
| 15 | 135* |
| 16 | 140* |
| 17 | 145* |
| 18 | 150* |
| 19 | 155* |
| 20 | 160* |
| 21 | 165* |
| 22 | 170* |
| 23 | 175* |
| 24 | 180* |
| 25 | 185* |
| 26 | 190* |
| 27 | 195* |
| 28 | 200* |
| 29 | 205* |
| 30 | 210* |
| 31 | 215* |
| 32 | 220* |
| 33 | 225** |
| 34 | 230*** |
| 35 | 235**** |
* - Add 3%if vehcile runs solely on diesel fuel ** - Add 2% if the vehicle runs solely on diesel fuel
*** - Add 1% if the vehicle runs solely on diesel fuel **** - No diesel suppiment applies
The P11d value is simply the manufacturers recommended retail list price, including all options and accessories, less the cost for road tax and the first registraion fee.
From 1st April 2008, a new lower 10% band was introduced to the table. The new band applies to cars with a CO2 value of 120g/km or less. Note that unlike the other bands, rather than rounding your vehciles CO2 emissions to the nearest tax band, there is no rounding of figures on this new band.
A 3% discount is also in place for all hybrid vehicles (combined petrol/electric vehicles), a 2% discount for LPG cars and a 6% discount for purely electric cars.
In order to estimate how much tax you will pay on your company car, caluculate the benefit in kind from the percentage of the list price of the car using the table above dependant upon the cars CO2 emissions and then multiply this by your personal tax rate, either 22% or 40%.
For full information and details of supplements that may be available for alternative fuelled vehicles please refer to the HM Revenue and Customs (HMRC) web site for more information:
For more information please visit the governments ‘Vehicle Certification Agency website using the following link:
