Tax rates and allowances >
Chargeable on employees earning £8,500 or over (including benefits), and directors.
The fuel benefit charge multiplier (FBC) for 2013/14 is £21,100 (2012/13 - £20,200).
The tax you pay on your company car is governed by five factors:
You can find your taxable percentage using the following table:
*The exact CO2 figure is rounded down to the nearest 5g/km.
Cars that cannot emit CO2 by being driven have a benefit of 0%.
How to find out how much CO2 your company car emits – see:
Reliable emissions data is not widely available for cars registered before 1 January 1998. For them, the following taxable percentages apply, regardless of fuel type:
If the employee pays for the full cost of all fuel for private journeys (usually including home to work) there will be no car fuel benefit. In all other cases the full tax charge will be due.
The taxable car fuel benefit, for 2013/14, is calculated by multiplying £21,100 by the same percentage as applies (or would apply) for the car benefit.
Example: A company car driver has a car which, on the day before it was first registered, had a list price of £28,000. It runs on petrol, and emits 175g/km of CO2.
If we assume the driver pays tax at 40%, the annual tax bill on the car is: £28,000 x 27% x 40% = £3,024.
If the employer provides any fuel used for private journeys and is not re-imbursed for the cost, the 2013/14 tax bill for the fuel is: £28,000 x 27% x 40% = £2,278.80.
The taxable benefit for the unrestricted use of company vans is £3,000 (with no reduction for older vans) plus a further £564 of taxable benefit if fuel is provided by the employer for private travel.
The tax payable for a basic rate (20%) payer is £712.80, a 40% payer is £1,425.60 and someone paying 45% tax and using a company van would be £1,603.80.
The company's Class 1A NIC payable is £491.830.