When an employee is provided with a company vehicle that they permitted to use for private journeys (including travelling to and from their place of work) they are required to pay tax on the Benefit in Kind. Where the employer also pays for the use of private fuel for the employee, a further Benefit in Kind charge will apply.
The amount of Benefit in Kind payable is determined by a number of factors such as:-
- Vehicle list price (including optional or additional equipment)
- Its Emissions based on CO2 gms/km
- The fuel type – petrol/diesel/hybrid/electric
- The employees personal tax rate
For most company car drivers, choosing a car that is easy on the pocket as well as being easy on the eye is an absolute must.
To help you decide which car to order, we have a link to a Tax Calculator which will tell you exactly what you will pay over the term of your agreement. Click here to be connected to the Fleet News car tax calculator.
By using the drop down menus you can refine your search down to the exact model, derivative and replacement cycle to gain an accurate view of a company car’s tax costs. You can also compare another car by using the second calculator alongside.
The car tax calculator shows the tax payable at 20% and 40% that the employee will pay as well as a breakdown of the employer’s costs including total running cost of the cycle and per mile.
The P11D value is the list price of the vehicle plus VAT and delivery charges where applicable.
The residual value of the vehicle is an estimate only and should only be used as a guide.