Expenses and Benefits

Company Car Taxation

Appropriate percentage petrol cars

2012/13 to 2016/17

Note

Where CO2 emissions are above 95g/km actual CO2 emissions are rounded down to the neaest 5g/km (e.g if actual CO2 emissions are 102g/km the appropriate percentage is found by reference to the table entry for 100g/km).

Diesel cars

For 2015/16 and earlier tax years, diesel cars attract a supplement of 3% subject to a maximum charge (35% for 2014/15 and earlier tax years and 35% rom 2015/16). The diesel supplement is abolished for 2016/17. From that date the appropriate percentage for a diesel car is the same as for a petrol car with the same CO2 emissions.

Zero-emission cars

From 6 April 2010 for five years (2010/11 to 2014/15 inclusive) no charge is payable in respect of cars that are not capable of producing CO2 engine emissions in any circumstance. This includes electric-only cars.

Car fuel

The cash equivalent of the benefit of fuel supplied for private motoring in a company car is found by multiplying the appropriate percentage (as found for company car tax purposes) by the multiplier as shown in the table below.

Company vans

Notes

1. The restricted private use condition is met if private use of the van is limited to home to work travel (ordinary commuting) and any other private use is insignificant.
2. The business use condition is met if the van is only made available for business journeys
3. A separate van scale charge applies if fuel is made available for private motoring in the van and the restricted private use condition is not met.
4. For five years from 6 April 2010, no charge applies in respect of zero-emission vans. These are vans, including electric-only vans, that are not capable of producing engine CO2 emissions in any circumstance.

mileage allowance payments

2011/12 onwards

Employers can pay employees approved mileage allowance payments for business journeys in their own vehicle without triggering a tax liability. Payments at or below the approved amounts do not need to be reported on the P11D. Payments in excess of the approved amount are taxable and must be reported on the employee’s P11D.

The approved amount is found by multiplying the number of business miles by the appropriate rate from the table above.

passenger payments

Employers can pay employees a tax-free passenger payment for carrying a qualifying passenger. The journey must be a business journey for the employee and the passenger and the passenger must also be an employee.

Tax-free passenger payments can be made at the rate of 5 pence per mile. Payments in excess of this amount are taxable and should be returned on the P11D.

advisory fuel rates for company cars

HMRC publish advisory fuel only mileage rates for company car drivers. Where the rates are used by employers to reimburse company car drivers for the cost of business travel in a company car, HMRC accept that no tax or National Insurance contributions are payable. However, it should be noted that the advisory rates are not binding and HMRC will allow higher rates to be paid tax-free where it can be demonstrated that these represent actual costs.

The rates can also be used to negotiate dispensations for mileage payments made for business travel in company cars.

Where an employer is provided with fuel for motoring in a company car, no fuel scale charge will arise if the employee is both to and actually does make good the cost of fuel used for private travel. Where reimbursement is made at or above the advisory rates, HMRC accept that the cost of private fuel has been made good.

From 1 December 2013

From 1 September 2012 to 30 November 2013

From 1 June 2013 to 31 August 2013

From 1 March 2013 to 31 May 2013

The rates are stated in pence per mile.

official rate of interest

Average official rate of interest

Actual official rate of interest

Different rates apply to certain foreign currency loans made in Swiss francs and Japanese Yen.