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Vehicles

Calculate the taxable benefit using the relevant tables for employer provided cars, vans and related fuel.

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Car Benefit

The car benefit is calculated by multiplying the car's list price, when new, by a percentage linked to the car's CO2 emissions. Due to a change in the way CO2 emissions are measured different benefit percentages apply to cars registered from 6 April 2020.

For diesel cars generally add a 4% supplement (unless the car is registered on or after 1 September 2017 and meets the Euro 6d emissions standard). The overall maximum percentage is capped at 37%.

The list price includes accessories.

The list price is reduced for capital contributions made by the employee up to £5,000.

Special rules may apply to cars provided for disabled employees.

For cars registered before 1 January 1998 and cars with no agreed CO2 emissions the charge is based on engine size.

2020/21:

CO2 emissions (gm/km) Registered Pre 6/4/20 Registered after 5/4/20
% of car's price taxed % of car's price taxed
0 0 0
 
1-50 2 0
Electric range >130 5 3
70-129 8 6
40-69 12 10
30-39 14 12
<30    
 
51-54 15 13
55-59 16 14
60-64 17 15
65-69 18 16
70-74 19 17
75-79 20 18
80-84 21 19
85-89 22 20
90-94 23 21
95-99 24 22
100-104 25 23
105-109 26 24
110-114 27 25
115-119 28 26
120-124 29 27
125-129 30 28
130-134 31 29
135-139 32 30
140-144 33 31
145-149 34 32
150-154 35 33
155-159 36 34
160-164 37 35
165-169 37 36
170 and above 37 37

2019/20:

CO2 emissions (gm/km) 1 % of car's list price taxed
0 to 50 16
51 up to 75 19
76 up to 94 22
95 23
100 24
105 25
110 26
115 27
120 28
125 29
130 30
135 31
140 32
145 33
150 34
155 35
160 36
165 and above 37

Note...

  1. Round down to nearest 5gm/km for values above 95

Car Fuel Benefit

Car fuel benefit applies if an employee has the benefit of private fuel for a company car.

The benefit is calculated by applying the percentage used to calculate the car benefit by a 'fuel charge multiplier'.

The charge is proportionately reduced if provision of private fuel ceases part way through the year. The fuel benefit is reduced to nil only if the employee pays for all private fuel.

Fuel charge multiplier: £24,500 (2019/20: £24,100)

Van Benefit

Van benefit is chargeable if the van is available for an employee's private use.

A fuel benefit may also be chargeable if an employee has the benefit of private fuel paid for in respect of a company van.

The charges do not apply to vans if a 'restricted private use condition' is met throughout the year.

A reduced benefit charge may apply to vans which cannot emit CO2 when driven.

Van benefit: £3,490 (2019/20: £3,430)

Fuel benefit: £666 (2019/20: £655)

Advisory Fuel Rates for Company Cars

Advisory rates only apply where employers reimburse employees for business travel in a company car or require employees to repay the cost of fuel used for private travel in a company car. If the rate paid per mile of business travel is no higher than the advisory rate for the particular engine size and fuel type of the car, HMRC will accept that there is no taxable profit and no Class 1 NIC liability.

From 1 September 2020:

Petrol

Engine size (cc) Pence per mile
1400 or less 10
1401 to 2000 12
Over 2000 17

Diesel

Engine size (cc) Pence per mile
1600 or less 8
1601 to 2000 10
Over 2000 12

LPG

Engine size (cc) Pence per mile
1400 or less 7
1401 to 2000 8
Over 2000 12

Notes...

  1. Hybrid cars are treated as either petrol or diesel cars for this purpose.
  2. The Advisory Electricity Rate for fully electric cars is 4 pence per mile. Electricity is not a fuel for fuel car benefit purposes.

Mileage Allowance Payments (MAPs) for Employees

MAPs represent the maximum tax free mileage allowances an employee can receive from their employer for using their own vehicle for business journeys.

An employer is allowed to pay an employee a certain amount of MAPs each year without having to report payments to HMRC.

If the employee receives less than the statutory rate, tax relief can be claimed on the difference.

2020/21 and 2019/20:

Vehicle type Pence per mile
Cars and vans - up to 10,000 miles 45
- over 10,000 miles 25
Bicycles 20
Motorcycles 24
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