Wrigley Partington

Chartered Accountants & Business Advisors

Vehicles

Tax and accountancy

Company vehicle benefits and taxes. Related business mileage rates.

Company Car Benefit in Kind - 2017-18
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.
Rating Petrol Diesel
Up to 50g/km 9% 12%
51 - 75g/km 13% 16%
76 - 94g/km 17% 20%
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  £3,230 (£3,170 2016/17)
Private fuel provided with the van  £3,840 (£3,768 2016/17)
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 2017)
  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 9p
Greater than 2000cc 22p 13p 14p

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 £22,200 (2016/17) and £22,100 (2015/16). 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 2016) Scale Charge (Three Month Return) VAT due per vehicle
(Three Month Return)
120 or less 116 £19.53
125 175 £29.17
130 186 £31.00
135 197 £32.83
140  209 £34.83
145  221 £36.83
150  233 £38.83
155 245 £40.83
160 256 £42.67
165 268 £44.67
170 279 £46.50
175 291 £48.50
180 303 £50.50
185 314 £52.33
190 326 £54.33
195 338 £56.33
200 350 £58.33
205 362 £60.33
210 373 £62.17
215 384 £64.00
220 396 £66.00
225 or above 408 £68.00
* Based on 20% Standard rate

Address

Wrigley Partington Chartered Accountants

Sterling House

501 Middleton Road

Chadderton, Oldham

OL9 9LY