Vehicle Benefits - CloudCo Accountants

Vehicle Benefits

Chargeable on employees and directors.

The fuel benefit charge (FBC) multiplier for 2019/20 is £24,100.

Car benefit

The tax you pay on your company car is governed by 5 factors (assuming that the car is made available for the full tax year):

  • The list price of the car, on the day before it was first registered, plus certain accessories
  • The rate at which the car emits carbon dioxide CO2
  • The fuel type (for most types of car, this is all the information you need to work out the taxable benefit)
  • Your highest rate of income tax
  • Any capital contribution to the cost of the car up to a maximum of £5,000.

You can find your taxable percentage using the following table:

2019/20 company car taxable benefits table

CO2 emissions (g/km)*Petrol
 0 to 5016%
51 to 7519%
76 to 9422%
95 to 9923%
100 to 10424%
105 to 10925%
110 to 11426%
115 to 11927%
120 to 12428%
125 to 12929%
130 to 13430%
135 to 13931%
140 to 14432%
145 to 14933%
150 to 15434%
155 to 15935%
160 to 16436%
165 and over37%
*The exact CO2 figure is rounded down to the nearest 5g/km.

Add 4% if car runs solely on diesel up to a maximum of 37% for 2019/20.

How to find out how much CO2 your company car emits – see:

  • The car’s V5 registration document
  • Your dealer
  • The data pages of car magazines (current models)
  • The Vehicle Certification Agency
  • The website of the Society of Motor Manufacturers and Traders

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:

Engine capacityTaxable %
Up to 1400cc20%
1401 – 2000cc31%
Over 2000cc37%

Car fuel benefits

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 2019/19, is calculated by multiplying £24,100 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 £30,000. It runs on petrol, and emits 165g/km of CO2.

If we assume the driver pays tax at 40%, the annual tax bill on the car is: £30,000 x 37% x 40% = £4,440.

If the employer provides any fuel used for private journeys and is not reimbursed for the cost, the 2019/20 tax bill for the fuel is: £24,100 x 37% x 40% = £3,566.80.

Company vans

There is also a taxable benefit of £655 if any fuel is provided by the employer for private travel (including home-to-work travel).

The tax payable for both van and fuel benefit (for private use) for a basic rate (20%) taxpayer is £817, a 40% taxpayer is £1,634 and someone paying 45% tax and using a company van would be £1,838.25.

Company vans which do not have emissions attract a benefit-in-kind charge.

For 2019/20 this will be 60% of the full charge ie £2,058 (ie 60% X £3,430).

Beyond 2018
From April 2020, there will be new lower bands for the lowest emitting cars (ULEVs). The appropriate percentages will be:

  • zero-emission cars: 2%<
  • cars with CO2 emissions between 1g/km and 50g/km: range from 2-14%, depending on the number of zero-emission miles the vehicle can travel.

The changes also increase the appropriate percentages by 1% to a maximum value of 37% for cars with CO2 emissions of 90g/km and above.

These changes will affect employers and those individuals participating in company car schemes.

CloudCo Accountancy Group

CloudCo Group is a Chartered Management Accountancy Firm offering premium accounting services to a range of businesses and individuals from their office in Milton Keynes.

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