Company Vehicles

The car benefit is calculated by multiplying the car's list price, when new (Plus any accessories and extras), by a percentage linked to the car's CO2 emissions.  

For diesel cars you will need to a add 4% supplement (unless the car is registered on or after 1 September 2017 and meets the Euro 6d emissions standard).  

The percentage is capped and can not be anymore than 37%.

Employees are able to make a capital contribution of up to £5,000 to reduce the list price.

Percentage Calculator

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 fuel benefit is reduced to nil only if the employee pays for all private fuel. 

Fuel charge multiplier for 2023/24 - £27,800 (2022/23 - £25,300)

HMRC Fuel 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.  

Van benefit for 2023/24 - £3,960 (2022/23 - £3,600)

Fuel benefit for 2023/24 - £757 (2022/23 - £688)

HMRC Van Benefit

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:

Cars:

Up to 10,000 miles - 45p per mile

Over 10,000 miles - 25p per mile

Motorcycles: Any mileage - 24p per mile

Bike: Any mileage - 20p per mile

HMRC mileage rates