Vehicles

Name: Makesworth Accountants
Price range: $$

Quick Menu:

Car Benefit
Car Fuel Benefit
Van Benefit
Advisory Fuel Rates for Company Cars
Mileage Allowance Payments for Employees

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 generally add a 4% supplement (unless the car is registered on or after 1 September 2017 and meets the Euro 6d emissions standard) but the maximum is still 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.

2018/19:

CO₂ emissions (gm/km) ¹	% of car’s list price taxed
0 to 50	13
51 up to 75	16
76 up to 94	19
95	20
100	21
105	22
110	23
115	24
120	25
125	26
130	27
135	28
140	29
145	30
150	31
155	32
160	33
165	34
170	35
175	36
180 and above	37

2017/18:

CO₂ emissions (gm/km) ¹	% of car’s list price taxed
0 to 50	9
51 up to 75	13
76 up to 94	17
95	18
100	19
105	20
110	21
115	22
120	23
125	24
130	25
135	26
140	27
145	28
150	29
155	30
160	31
165	32
170	33
175	34
180	35
185	36
190 and above	37

Note…

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

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: £23,400 (2017/18: £22,600)

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: £3,350 (2017/18: £3,230)

Fuel benefit: £633 (2017/18: £610)

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.

From 1 September 2018:

Petrol

Engine size (cc)	Pence per mile
1400 or less	12
1401 to 2000	15
Over 2000	22

Diesel

Engine size (cc)	Pence per mile
1600 or less	10
1601 to 2000	12
Over 2000	13

LPG

Engine size (cc)	Pence per mile
1400 or less	7
1401 to 2000	9
Over 2000	13

Notes…

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

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.