Chargeable on employees earning £8,500 or over (including benefits) and directors.

Car Benefits 2011 / 12
Minimum
15% of list price (emission levels 125g/km CO2)
Increments
1% for each additional 5g/km CO2 emissions over 125g/km CO2
Diesel cars
3% surcharge unless car meets Euro IV standards (1)
Electric cars
0% of list price
Maximum
35% of list price

(1) Waiver ceases for cars registered on or after 01/01/2006
Visit www.vca.gov.uk to check the car emission levels
CO2 levels are rounded down to the nearest 5g


If no emissions rating available
Reliable emissions data is not widely available - particularly for cars registered before 1 January 1998. For these the following taxable percentages apply, regardless of fuel type:
Engine size:
Registered before 01/01/1998
Registered after 01/01/1998
1,400 cc or less
15%
15%
1,401-2,000 cc
22%
25%
over 2,000 cc
32%
35%


Car Fuel Benefits
If the employee pays for the full cost of all fuel for private journeys (usually including home to work) there will be no car fuel benefit. In all other cases the full tax charge will be due.


Provision of fuel for company cars
(If any private fuel is provided)
.
2011 / 12
2010 / 11
The company car percentage is multiplied by
£18,800
£18,000


VAT on fuel benefits

Where businesses wish to reclaim the input VAT on fuel which has some degree of private use, they must account for output VAT on a scale charge.
Amounts treated as additional output tax per quarter

The table shows the VAT chargeable for quarters commencing on or after 1 May 2011

CO2 emissions
Appropriate percentage
Quarterly VAT
(g/km)
Petrol %
Diesel %
Fuel scale charge (£)
VAT element (20%)
Up to 75
5
8
157
26.17
76 to 120
10
13
157
26.17
121 – 124
15
18
157
26.17
125 - 129
15
18
236
39.33
130 – 134
16
19
252
42
135 – 139
17
20
268
44.67
140 – 144
18
21
283
47.17
145 – 149
19
22
299
49.83
150 – 154
20
23
315
52.5
155 – 159
21
24
331
55.17
160 – 164
22
25
346
57.67
165 – 169
23
26
362
60.33
170 – 174
24
27
378
63
175 – 179
25
28
394
65.67
180 – 184
26
29
409
68.17
185 – 189
27
30
425
70.83
190 – 194
28
31
441
73.5
195 – 199
29
32
457
76.17
200 – 204
30
33
472
78.67
205 – 209
31
34
488
81.33
210 – 214
32
35
504
84
215 – 219
33
35
520
86.67
220 – 224
34
35
536
89.33
225 and above
35
35
551
91.83


Advisory mileage rates for business mileage in company cars

From 1 March 2011
Engine size:
Petrol
Diesel
LPG
1,400 cc or less
14p
13p
10p
1,401-2,000 cc
16p
13p
12p
over 2,000 cc
23p
16p
17p
Petrol hybrid cars are treated as petrol cars for this purpose


Approved mileage rates for business mileage in own car
(From 6 April 2011)
Car and vans
Per mile
0 - 10,000 miles
45p
Over 10,000 miles
25p
Bicycles
20p
Motorcycles
24p

It is no longer possible to make a claim for tax relief based on the actual receipted bills, nor claim capital allowances or interest on loans related to car purchases.

Unless the employee is reimbursed at a rate higher than the AMAP, the payments do not need to be reported on a P11D. If the employer pays less than these rates, it is possible for the employee to claim income tax relief for the shortfall.

* Rates of up to 5p per mile, per passenger, are also tax and NICs free when paid for the carriage of fellow employees on the same business trip. From 6 April 2011 this is extended to carriage of volunteers


Company Vans
Unrestricted use
£3,000
Provision of private fuel
£550

Van drivers can avoid a benefit charge if they agree not to use the van for personal journeys. Driving to and from work is acceptable so long as there is a reasonable amount of business use.

The flat rate of £3,000 is reduced to nil for vans which cannot produce C02 engine emissions under any circumstances when driven. There is no fuel benefit for such vans.