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%)|
|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%|
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|
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)|
|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|
|225 or above||492||£82.00|
|* Based on 20% Standard rate|