Vehicle benefits 2011/12
We have kept these rates on our website for your convenience, you can see the vehicle benefit rates for 2012/13 here.
Chargeable on employees earning £8,500 or over (including benefits), and directors.
The fuel benefit charge multiplier (FBC) for 2011/12 was £18,800 (2010/11 - £18,000).
The tax you pay on your company car is governed by five factors:
- The list price of the car, on the day before it was first registered, plus certain accessories,
- The rate at which the car emits carbon dioxide (CO2),
- The fuel type (for most types of car, this is all the information you need to work out the taxable benefit)
- Your highest rate of income tax
- Any capital contribution to the cost of the car up to a maximum of £5,000
You can find your taxable percentage using the following table:
2011/12 taxable benefits table
|CO2 in g/km*||Taxable %||CO2 in g/km*||Taxable %|
|1 to 75||5%||8%||175 to 179||25%||28%|
|76 to 120||10%||13%||180 to 184||26%||29%|
|121 to 129||15%||18%||185 to 189||27%||30%|
|130 to 134||16%||19%||190 to 194||28%||31%|
|135 to 139||17%||20%||195 to 199||29%||32%|
|140 to 144||18%||21%||200 to 204||30%||33%|
|145 to 149||19%||22%||205 to 209||31%||34%|
|150 to 154||20%||23%||210 to 214||32%||35%|
|155 to 159||21%||24%||215 to 219||33%||35%|
|160 to 164||22%||25%||220 to 224||34%||35%|
|165 to 169||23%||26%||225 and over||35%||35%|
|170 to 174||24%||27%|
* The exact CO2 figure is rounded down to the nearest 5g/km
How to find out how much CO2 your company car emits – see:
- The car’s V5 registration document
- Your dealer
- The data pages of car magazines (current models)
- The Vehicle Certification Agency – www.vca.gov.uk
- The website of the Society of Motor Manufacturers and Traders - www.smmt.co.uk/co2/co2search.cfm
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||15%|
|1401 - 2000cc||22%|
Car fuel benefits
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 2011/12, is calculated by multiplying £18,800 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 £18,800. It runs on petrol, and emits 168 g/km of CO2.
If we assume the driver pays tax at 40%, the annual tax bill on the car is: £18,800 x 23% x 40% = £1,729.60.
If the employer provides any fuel used for private journeys and is not re-imbursed for the cost, the 2011/12 tax bill for the fuel is: £18,800 x 23% x 40% = £1,729.60.
The taxable benefit for the unrestricted use of company vans is £3,000 (with no reduction for older vans) plus a further £550 of taxable benefit if fuel is provided by the employer for private travel.
The maximum tax payable on the use of a company van is £1,775 p.a., and the employer's Class1A NIC payable is £489.90 p.a.
The tax payable for a basic rate (20%) payer is £710, a 40% payer is £1,420 and someone paying 50% tax and using a company van would be £1,775!
The company's Class 1A NIC payable is £489.90.