Company Car Tax

RSS Company Car Tax


Benefit in kind tax

Benefit in kind tax, or company car tax as it is sometimes referred to, is designed to do two things.

Firstly, to reflect the benefit of having access to a vehicle for private use and secondly, to encourage drivers to choose more environmentally-friendly cars because the tax charged is directly related to the carbon dioxide level a car produces.

The Government has put green issues high on its agenda, so encouraging use of cars that reduce emissions helps meet its environmental targets. Basically, company car drivers pay tax on a percentage of the value of the car.

The value of the car is calculated as the new price published by the manufacturer, plus VAT, delivery, number plates and any optional extras. This is called the P11D value.

The driver is then liable to pay tax on a percentage of the P11D value decided by the carbon dioxide emissions of the car.

Company Car Tax Explained

For more information on company car tax, either click on the buttons below or read more in the company car tax articles posted below.

company car tax   company car tax calculator

Company car tax bands

Company car tax bands

18 November 2010 13:42

It has been since April 2002 that the company car tax has been based on a car's list price and CO2 emission figure.


Company Car Tax: Company car tax explained

Company Car Tax: Company car tax explained

18 August 2010 14:44

Fleet operators should now be used to CO2 emissions forming the basis of company car tax in the UK.


P11D: a taxing issue?

P11D: a taxing issue?

18 August 2010 12:40

The P11D value of a car will help shape an employee’s tax contributions and is an important consideration for fleets.


Car CO2 emissions

Car CO2 emissions

16 August 2010 12:05

Over recent years the importance of CO2 emissions has risen dramatically and the need to lower CO2 emissions has been a priority.


Benefit in kind explained

Benefit in kind explained

16 August 2010 10:12

Benefit in kind tax or company car tax as it is sometimes known is based upon the P11D value of the car.


Company Car Tax: Writing down allowance

Company Car Tax: Writing down allowance

07 April 2010 11:52

Since April 2009 new rules designed to incentivise lower CO2 company cars were introduced that have a direct impact on companies’ bottom lines.


Company Car Tax: The impact of VED, BiK and Showroom taxes on your fleet

Company Car Tax: The impact of VED, BiK and Showroom taxes on your fleet

01 April 2010 09:35

Forward planning is vital to avoid future tax rises as drivers and fleets choosing cars now face rising bills if they don’t take account of CO2 levels.


Company Car Tax Widget

Company Car Tax Widget

28 February 2010 18:43

Fleet News with HMRC brings you a handy company car tax calculator to provide you with helpful tax information for your business.


Commercial Vehicle Tax Rules

Commercial Vehicle Tax Rules

24 February 2010 11:46

Light commercial vehicles, including double-cab pick-up trucks with payloads in excess of 1000kg, are classed as a benefit in kind if they are also provided for private use. Unlike cars, tax on use of commercial vehicles provided by an employer is levied at a flat rate.


BiK Tax on Free Fuel

BiK Tax on Free Fuel

24 February 2010 11:30

Provision of free fuel for private mileage has faced repeated attempts to curtail it during the last 10 years with a very small percentage of employees being offered the perk.



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Company Car Tax

Company car tax explained with Fleet News.

All the information and guidance you need about company car tax for your fleet, find out more about company car tax, benefit in kind and legislation surrounding your fleet. Use the Fleet News company car tax calculator to calculate the company car tax for your fleet and find out more about how benefit in kind can affect your business.

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