Company vehicle benefits and taxes. Related business mileage rates.
2021/22 - cars first registered after 5 April 2020
|CO2 emission g/km||Electric range (miles)||% of list price||Co2 emissions g/km||% of list price|
|85-89||21||165 or more||37|
|Except for zero emissions cars,rates are 1% higher (up to a maxi 37%) for cars registered before 6 April 2020.|
|4% supplement applies to diesel cars which do not meet the RDE2 standard (up to maxi 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.
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||£3,500|
|Private fuel provided with the van||£669|
|HMRC Approved Mileage Rates|
|Cars and Vans||First 10,000 business miles per annum||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 2021)|
|Less than or equal to 1400cc||10p||7p|
|Less than or equal to 1600cc||9p|
|1401cc - 2000cc||12p||8p|
|1601cc - 2000cc||11p|
|Greater than 2000cc||18p||12p||12p|
|Advisory Elecricity Rate for fully electric cars is 4p per mile|
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 of £24,600 (2021/22) and £24,500 (2020/21).