What is Benefit in Kind?
If your new vehicle is a company car, that will be made available for private use, a "benefit in kind" value will be calculated on which you will pay tax.
How is it calculated?
The full price of the car including optional extras, manufacturers delivery and VAT, known as the P11D value is multiplied by the appropriate % based on the CO2's of the car, (please see table below for appropriate %)
You will be charged tax on this amount at the highest rate at which you pay income tax.
Calculate my tax
If you know the P11D value and CO2 of your car please enter below, also enter the rate at which you pay income tax to discover how much tax you will pay for the benefit of having your company car.
If you don't know the above click here to build your car, discover the P11D, CO2 and calculate the tax charge.
If your employer provides fuel for your private use this is a benefit to you and will incur a tax charge.
This is calculated by multiplying £21,000 (a set amount irrespective of car driven) by the same % derived from the CO2 of your car, see above or table below.
e.g A car with CO2ís of 114 g/km has a tax charge of 14%. . The fuel scale charge is £21,100 x 14% = £2,954, equating to annual fuel tax liability of £590.80 for a 20% tax payer, or £1181.60 for a 40% tax payer.
If you are given a company van, and are allowed unrestricted private use, you will be charged tax on £3,000 p.a. if you are also allowed fuel for your private mileage tax will be charged on £500.
Unlike cars, journeys in a van between home and work do not count as private use as long as the van is mainly used for work journeys. In this situation no tax charge is made against the employee.
Company Car Tax Table
|Taxable percentage of P11D value|
|220 or above||35||35||35||35||37||37||37|
The Chancellor announced in his Budget that first year allowances (FYA) for ultra low emission vehicles (ULVs) will be extended until 31 March 2018.