Wrigley Partington

Chartered Accountants & Business Advisors

Vehicles

Tax and accountancy

Company vehicle benefits and taxes. Related business mileage rates.

Company Car Benefit in Kind - 2018-19
The taxable benefit is calculated as a percentage of the car's UK list price. The calculation begins with the car's C02 emissions in grams per kilometre. Diesel supplement increased to 4% (2017-18 3%)
Rating Petrol Diesel
Up to 50g/km 13% 17%
51 - 75g/km 16% 20%
76 - 94g/km 19% 23%
Over 95g/km (add 1% for every 5g/km +1% +1%
Maximum rate 37% 37%

 Chargeable on employees earning £8,500 or over (including benefits) and directors

The list price relates to the day before first regsitration and includes accessories.  There is no upper limit for 2011/12 onwards.

The list price is reduced by the employee's capital contribution when the car is first made available,subject to a maximum deduction of £5,000.

Van with Private Use (other than home to work)  
No private fuel provided to employee  £3,350 (£3,230 2017/18)
Private fuel provided with the van  £633 (£610 2017/18)
HMRC Approved Mileage Rates   
Cars and Vans First 10,000 business miles per annum (as from 1 April 2011) 45p
  Business miles thereafter 25p
Motorcycles   24p
Bicycles   20p
Business passengers    

Income tax and NICs may be due on higher rates and tax relief on lower rates.

Fuel only :Advisory rates for employee reimbursement or employer reimbursement of business mileage are (effective from 1 March 2018)
  Petrol Diesel LPG
Less than or equal to 1400cc 11p   7p
Less than or equal to 1600cc   9p  
Less than or equal to 2000cc 14p 11p 8p
Greater than 2000cc 22p 13p 13p

Where the cost of all fuel for private use is borne by the employee, the fuel benefit is nil. Otherwise, the taxable benefit is calculated as the car benefit percentage (see above) of £23,400 (2018/19) and £22,600 (2017/18). VAT is payable by the business by reference to the CO2 emissions (rounded down to the next multiple of 5) as follows:  

Car Fuel Benefit
CO2 Band (Applicable from 1 May 2017) Scale Charge (Three Month Return) VAT due per vehicle
(Three Month Return)
120 or less 140 £23.33
125 211 £35.17
130 224 £37.33
135 238 £39.67
140  252 £42.00
145  267 £44.50
150  281 £46.83
155 295 £49.17
160 309 £51.50
165 323 £53.83
170 337 £56.17
175 351 £58.50
180 365 £60.83
185 379 £63.17
190 393 £65.50
195 408 £68.00
200 422 £70.33
205 436 £72.67
210 449 £74.83
215 463 £77.17
220 478 £79.67
225 or above 492 £82.00
* Based on 20% Standard rate

Address

Wrigley Partington Chartered Accountants

Sterling House

501 Middleton Road

Chadderton, Oldham

OL9 9LY