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Vehicle Benefits Car Benefit The benefit of using a company car is based on a percentage of the cars list price graduated according to the level of the car's CO2 emissions. Click here for the full CO2 emissions table This benefit is calculated as follows: List Price x Relevant Scale Percentage. For example, in 2009/10 a petrol car costing £22,000 with a CO2 emission of 190g will be taxed as £22,000 x 26% resulting in a benefit in kind of £5,720. Diesel cars attract a 3% supplement (but not to take the relevant percentage over 35%). There are special rules for alternative fuel cars and for automatics driven by some disabled drivers.
Class 1A National Insurance In addition employers have to pay Class 1A National Insurance at 12.8% in 2009/10 and 2010/11 on all taxable benefits, increasing to 13.8% from 2011/12..
Fuel Benefit The benefit of having fuel provided for private mileage is also based on the cars CO2 emissions. The fuel scale benefit is reduced to nil only if the employee makes good all the cost of fuel used for private use. Journeys between home and place of work are regarded as private motoring. Click here for the Fuel Benefit Rates Private Fuel in Company Cars
Authorised Inland Revenue Mileage Rates
If employers pay higher rates the amount paid in excess of the statutory rates will be liable to tax and National Insurance. Other Benefits/Limits Vans
A nil charge applies to employees who have to take their van home, (i.e. for an early start) providing they are not allowed other private use. The benefit is also reduce to nil if the van is propelled solely by electricity.
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