Company car benefits
This page contains the latest information for company car and fuel benefits.
Car benefit rates
Company cars are taxed on a percentage of their price, which varies according to the level of their carbon dioxide emissions, measured in grams per kilometre.
- A minimum charge of 15% applies to cars emitting CO2 at or below specified levels, measured in g/km. This builds up in 1% steps for every additional 5g/km up to a maximum charge of 35%.
- A 3% supplement is added to diesel cars (up to the maximum charge of 35%).
- Cars without an approved figure of CO2 emissions are taxed according to their engine size.
Car fuel benefit rates
The fuel benefit is calculated by multiplying the percentage used to calculate car benefit by a set figure, currently £14,400.
e.g. if car benefit percentage is 23%, the fuel benefit is £14,400 x 23% = £3,312.
Advisory fuel rates for company cars
Non-statutory rates can be used by an employer to:
- reimburse employees for fuel used for business miles travelled in the company car, or
- charge employees for fuel used for private miles travelled in the company car where the employer has provided fuel and wishes to avoid the fuel scales.
The rates accepted by HM Revenue & Customs from 1 August 2007 for cars up to 3,000cc are:
| Engine size | Petrol | Diesel | LPG |
|---|---|---|---|
| 1,400cc or less | 10p | 10p | 6p |
| 1,401cc to 2,000cc | 13p | 10p | 8p |
| 2,001cc or more | 18p | 13p | 10p |
This page was last reviewed on 16 September 2007. The information may not reflect changes in legislation made after this date.
This is only a guide to your tax position and should not be relied on in place of professional accounting or tax advice. Any calculated figures are illustrative and are based on the data you provided.
