Car & Fuel benefit, Employees Private Fuel & Mileage

Vehicles

Car Benefit

The car benefit is calculated at a percentage given by a table and on list price.
For diesel cars add a 3% supplement but the maximum is 37%.
The list price includes accessories and is not subject to an upper limit.

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.

2015/16:2014/15:Note…

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

Car Fuel BenefitCar 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.
The charge does not apply to certain environmentally friendly cars.
Fuel charge multiplier: £22,100 (2014/15: £21,700)Van BenefitVan benefit is chargeable if the van is available for an employee’s private use.
The charges do not apply to vans which cannot emit CO2 when driven or if a restricted private use condition is met throughout the year.
A fuel benefit may also be chargeable if an employee has the benefit of private fuel paid for in respect of a company van.
Van benefit: £3,150 (2014/15: £3,090)
Fuel benefit: £594 (2014/15: £581)Advisory Fuel Rates for Company CarsAdvisory 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 2015:PetrolDieselLPGNotes…

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

Mileage Allowance Payments for EmployeesMileage Allowance Payments (MAPs) are what 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.2015/16 and 2014/15:

Mileage Allowance Payments for Employees

Mileage Allowance Payments (MAPs) are what 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.

2015/16 and 2014/15:

CO2 emissions (gm/km) 1 % of car’s list price taxed
0 up to 50 5
51 to 75 9
76 up to 94 13
95 14
100 15
105 16
110 17
115 18
120 19
125 20
130 21
135 22
140 23
145 24
150 25
155 26
160 27
165 28
170 29
175 30
180 31
185 32
190 33
195 34
200 35
205 36
210 and above 37
CO2 emissions (gm/km) 1 % of car’s list price taxed
1 up to 75 5
76 to 94 11
95 12
100 13
105 14
110 15
115 16
120 17
125 18
130 19
135 20
140 21
145 22
150 23
155 24
160 25
165 26
170 27
175 28
180 29
185 30
190 31
195 32
200 33
205 34
210 and above 35
Engine size (cc) Pence per mile
1400 or less 11
1401 to 2000 14
Over 2000 21
Engine size (cc) Pence per mile
1600 or less 9
1601 to 2000 11
Over 2000 13
Engine size (cc) Pence per mile
1400 or less 7
1401 to 2000 11
Over 2000 14
Vehicle type Pence per mile
Cars and vans – up to 10,000 miles
– over 10,000 miles
45
Bicycles 20
Motorcycles 24

Vehicle Excise Duty for Passenger Cars

For vehicles registered since 1st March 2001, the CO2 shown on the V5 (Registration Document) is used as the basis for applying Vehicle Excise Duty (VED), or ‘Road Tax’ rates for passenger cars.

‘Standard’ rates of vehicle tax for cars (petrol and diesel)

BandM CO2emission (g/km) First year (£) 1 Subsequent years (£) 1
A Up to 100 0 0
B 101-110 0 20
C 111-120 0 30
D 121-130 0 105
E 131-140 125 125
F 141-150 140 140
G 151-165 175 175
H 166-175 285 200
I 176-185 335 220
J 186-200 475 260
K2 201-225 620 280
L 226-255 840 475
M Over 255 1,065 490

Notes…

  1. 12 months rate.
  2. Includes cars with a CO2 figure over 225gm/km but were registered before 23 March 2006.

VAT fuel scale charges

Businesses must use these VAT fuel scale charges from the start of their next prescribed accounting period beginning on or after 1 May 2015.

Monthly

CO2 band (g/km) Gross (£) VAT (£) Net (£)
≤120 44 7.33 36.67
125 66 11 55
130 70 11.67 58.33
135 75 12.50 62.50
140 80 13.33 66.67
145 84 14 70
150 88 14.67 73.33
155 93 15.50 77.50
160 97 16.17 80.83
165 102 17 85
170 106 17.67 88.33
175 111 18.50 92.50
180 115 19.17 95.83
185 119 19.83 99.17
190 124 20.67 103.33
195 129 21.50 107.50
200 133 22.17 110.83
205 138 23 115
210 142 23.67 118.33
215 146 24.33 121.67
220 151 25.17 125.83
225 or more 155 25.83 129.17

Quarterly

CO2 band (g/km) Gross (£) VAT (£) Net (£)
≤120 133 22.17 110.83
125 200 33.33 166.67
130 213 35.50 177.50
135 227 37.83 189.17
140 240 40 200
145 254 42.33 211.67
150 267 44.50 222.50
155 281 46.83 234.17
160 294 49 245
165 308 51.33 256.67
170 320 53.33 266.67
175 334 55.67 278.33
180 347 57.83 289.17
185 361 60.17 300.83
190 374 62.33 311.67
195 388 64.67 323.33
200 401 66.83 334.17
205 415 69.17 345.83
210 428 71.33 356.67
215 441 73.50 367.50
220 455 75.83 379.17
225 or more 468 78 390

Annually

CO2 band (g/km) Gross (£) VAT (£) Net (£)
≤120 536 89.33 446.67
125 802 133.67 668.33
130 857 142.83 714.17
135 909 151.50 757.50
140 965 160.83 804.17
145 1016 169.33 846.67
150 1072 178.67 893.33
155 1123 187.17 935.83
160 1179 196.50 982.50
165 1231 205.17 1025.83
170 1286 214.33 1071.67
175 1138 223 1115
180 1393 232.17 1160.83
185 1445 240.83 1204.17
190 1501 250.17 1250.83
195 1552 258.67 1293.33
200 1608 268 1340
205 1660 276.67 1383.33
210 1715 285.83 1429.17
215 1767 294.50 1472.50
220 1822 303.67 1518.33
225 or more 1874 312.33 1561.67

Where the CO2 emission figure is not a multiple of five, the figure is rounded down to the next multiple of five to determine the level of the charge. For a bi-fuel vehicle which has two CO2 emissions figures, the lower of the two figures should be used. For cars which are too old to have a CO2 emissions figure, you should identify the CO2 band based on engine size, as follows:

  • If its cylinder capacity is 1,400cc or less, use CO2 band 140;
  • If its cylinder capacity exceeds 1,400cc but does not exceed 2,000cc, use CO2 band 175; and
  • If its cylinder capacity exceeds 2,000cc, use CO2 band 225 or above.