Vehicles
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.

For diesel cars add a 3% supplement but the maximum is 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.

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: £22,600 (2016/17: £22,200)

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: £3,230 (2016/17: £3,170)
Fuel benefit: £610 (2016/17: £598)

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.

Mileage Allowance Payments for Employees

Mileage Allowance Payments (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.

Car Benefit 2017/18:

CO2 emissions (gm/km) 1% of car’s list price taxed
0 up to 509
51 to 7513
76 up to 9417
9518
10019
10520
11021
11522
12023
12524
13025
13526
14027
14528
15029
15530
16031
16532
17033
17534
18035
18536
190 and above37
Car Benefit 2016/17:

CO2 emissions (gm/km) 1% of car’s list price taxed
0 up to 507
51 to 7511
76 up to 9415
9516
10017
10518
11019
11520
12021
12522
13023
13524
14025
14526
15027
15528
16029
16530
17031
17532
18033
18534
19035
19035
19536
200 and above37

Note…
Round down to nearest 5gm/km for values above 95

From 1 March 2018. Petrol:

Engine size (cc)Pence per mile
1400 or less11
1401 to 200014
Over 200022
From 1 March 2018. Diesel:

Engine size (cc)Pence per mile
1600 or less9
1601 to 200011
Over 200013
From 1 March 2018. LPG:

Engine size (cc)Pence per mile
1400 or less7
1401 to 20008
Over 200013

Notes…

Hybrid cars are treated as either petrol or diesel cars for this purpose.

Mileage Allowance for Employers. 2017/18 and 2016/17:

Vehicle typePence per mile
Cars and vans – up to 10,000 miles45
Cars and vans – over 10,000 miles25
Bicycles20
Motorcycles24