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Car Benefit Calculator – work out the taxable Car Benefit Charge if you are provided with a company car.

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This calculator works out the taxable Car Benefit charge if you are provided with a company car.

When a company car is made available for the private use of an employee a 'benefit in kind' value is calculated in relation to the car (and the fuel if that is also made available for private use).

It is a peculiar fact that although Car Benefit was originally intended to tax the private mileage use of employees or directors using company cars, the actual level of private mileage is no longer relevant.

This is because from 2002 Car Benefit was linked to the car's carbon dioxide emissions (CO2), with the intention of driving companies to employees to use more environmentally friendly vehicles.

From 2008/09 there will be an additional lower rate of 10% for company cars with CO2 emissions of 120 grams per kilometre or less.

The calculation of car benefit will be simplified from 6 April 2011, and the lower threshold will be reduced to 125g/km. The lower threshold is due to be removed in 2012/13, where the 10% rate will apply to cars emitting 99g/km or less and for each additional 5g/km one percent is added. The maximum benefit will therefore be where CO2 is at least 220g/km (35%).

From 6 April 2010, very-low carbon cars that emit between 1g-75g/km will receive a 50% reduction on the list price when calculating car benefit tax. This is due to last for the next five years

The appropriate percentage used for calculating car benefit tax for electric cars has been reduced from 9% to 0% for five years from April 2010. This will reduce the employee car benefit charge to zero (and also remove the Class1A NIC charge on employers.)

 

CO2 emissions in grams per kilometre

Percentage of car's price taxed

2010/11

Petrol

Diesel

120 or less

10

10

130

15

18

135

16

19

140

17

20

145

18

21

150

19

22

155

20

23

160

21

24

165

22

25

170

23

26

175

24

27

180

25

28

185

26

29

190

27

30

195

28

31

200

29

32

205

30

33

210

31

34

215

32

35

220

33

35

225

34

35

230 or higher

35

35

Points to be aware of:
The price of the car for tax purposes will usually be the total of:

  • The UK list price of the car on the day before the date of registration.
  • Taxes, VAT and car tax (if registered before 12 November 1992) but not vehicle excise duty (road tax) or the new car registration fee.
  • Delivery charges (including VAT).
  • List price of an accessory fitted before the car was first made available (including VAT, delivery and fitting charges).
  • List price of an accessory or set of accessories (eg CD Player) with a price of at least £100 (including VAT)

Capital contributions (up to £5,000) that you make towards the cost of the car or accessories reduce the price of the car for tax purposes, on a pound for pound basis

If the car is unavailable for part of the tax year, the car benefit is reduced proportionately.
You will still be liable for the Car Benefit if you are unable to drive your company car for any reason (i.e. illness or holidays), unless the car is unavailable.

CO2 emmission figures are shown on the Vehicle Registration Document that will have been supplied with the car. This figure is fixed for the lifespan of the car. If the car was registered between 01/01/1998 and 28/02/2001, you will need to look up the CO2 figures.

Cars registered before 1998 or without an emissions figure will be taxed according to their engine size (at a proportionately higher rate).

The figures projected by the calculator are only for guidance purposes - whilst we aim to ensure the accuracy of our calculators, we can take no responsibility for the usage made of the calculations generated on this site.