Car benefit assessment

Charge based on a percentage of the initial list price of the car, including accessories, delivery charges and VAT. The percentage depends on the carbon dioxide emissions rating of the car, and whether the engine runs on petrol or diesel. The taxable benefit on an electric car (no emissions) is nil.

Special rules apply to older cars which do not have a CO₂ rating. Employee contributions for private use are deducted from the taxable figure. Company vans are charged at £3,000 if private use is more than home-to-work travel. An additional amount of £550 is charged if fuel is provided free for private use.  There is no taxable benefit on an electric van.

Car fuel benefit
The benefit of free fuel for private use in a company car is calculated using the same percent as that used for the car benefit, applied to a standard figure of £20,200 (2011/12: £18,800). For vans the benefit figure is £550. Employee contributions towards fuel do not reduce the taxable figure unless all private fuel is paid for.

You are advised to consult us before acting on any information contained herein.