Company car tax has been based on a car's list price and CO2 emission figure since April 2002.
As time has passed the tax bands have tightened, aligning themselves with lower CO2 emissions as the country become more environmentally focussed. Now significant savings for fleets can be made by opting for a fleet vehicle with low CO2 emissions.
The total cost of company car tax to be paid is a combination of the following three things;
P11D Price
CO2 emissions
Salary
Multiply the P11D value of the car by the benefit-in-kind percentage that it's subject to based on its CO2 output. This is the proportion of the car's value that you'll be taxed on based on your personal income tax band, so multiply that by 20%, 40% or 50% as appropriate in relation to your salary band.
The Fleet News Car Tax Calculator works all this out for you and breaks down the employers and employees costs.
Click on the icon below to use the Car Tax Calculator
