Chartered Management Accountants | Milton Keynes
Chargeable on employees and directors.
The fuel benefit charge (FBC) multiplier for 2019/20 is £24,100.
The tax you pay on your company car is governed by 5 factors (assuming that the car is made available for the full tax year):
You can find your taxable percentage using the following table:
|CO2 emissions (g/km)*||Petrol|
|0 to 50||16%|
|51 to 75||19%|
|76 to 94||22%|
|95 to 99||23%|
|100 to 104||24%|
|105 to 109||25%|
|110 to 114||26%|
|115 to 119||27%|
|120 to 124||28%|
|125 to 129||29%|
|130 to 134||30%|
|135 to 139||31%|
|140 to 144||32%|
|145 to 149||33%|
|150 to 154||34%|
|155 to 159||35%|
|160 to 164||36%|
|165 and over||37%|
Add 4% if car runs solely on diesel up to a maximum of 37% for 2019/20.
How to find out how much CO2 your company car emits – see:
Reliable emissions data is not widely available for cars registered before 1 January 1998. For them, the following taxable percentages apply, regardless of fuel type:
|Engine capacity||Taxable %|
|Up to 1400cc||20%|
|1401 – 2000cc||31%|
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.
The taxable car fuel benefit, for 2019/19, is calculated by multiplying £24,100 by the same percentage as applies (or would apply) for the car benefit.
Example: A company car driver has a car which, on the day before it was first registered, had a list price of £30,000. It runs on petrol, and emits 165g/km of CO2.
If we assume the driver pays tax at 40%, the annual tax bill on the car is: £30,000 x 37% x 40% = £4,440.
If the employer provides any fuel used for private journeys and is not reimbursed for the cost, the 2019/20 tax bill for the fuel is: £24,100 x 37% x 40% = £3,566.80.
There is also a taxable benefit of £655 if any fuel is provided by the employer for private travel (including home-to-work travel).
The tax payable for both van and fuel benefit (for private use) for a basic rate (20%) taxpayer is £817, a 40% taxpayer is £1,634 and someone paying 45% tax and using a company van would be £1,838.25.
Company vans which do not have emissions attract a benefit-in-kind charge.
For 2019/20 this will be 60% of the full charge ie £2,058 (ie 60% X £3,430).
From April 2020, there will be new lower bands for the lowest emitting cars (ULEVs). The appropriate percentages will be:
The changes also increase the appropriate percentages by 1% to a maximum value of 37% for cars with CO2 emissions of 90g/km and above.
These changes will affect employers and those individuals participating in company car schemes.
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