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

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.


Company Car Tax: National Insurance contributions

Company Car Tax: National Insurance contributions

24 February 2010 11:10

Companies are liable to pay Class 1A National Insurance contributions where staff are provided with vehicles on which they are taxed for private use.



fleet poll

How is fuel purchased at your company?

We issue drivers with a weekly fixed price fuel card: 9.5 %

We issue drivers with a pump price fuel card: 28.6 %

We do fuel hedging (fixing the price of fuel for up to a year): 9.5 %

We use Platts pricing: 9.5 %

We have a pay and reclaim system: 33.3 %

We have fuel bunkers at our site(s) : 9.5 %

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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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