Car benefit assessment 2007/08

Charge based on a percentage of the initial list price of the car, including accessories, delivery charges and VAT. The percentage depends on the car's level of CO₂ emissions.

	Petrol	Diesel
Minimum*	15%	18%
Maximum**	35%	35%

* Where CO₂ emission does not exceed 145 g/km
Minimum will increase by 1% for each 5 g/km of extra CO₂ emission.

** Where CO₂ emission is 245 g/km or over (03/04 255 g/km).

Company vans are charged at £500 (£350 where 4 years or older) which includes fuel for private use. Employee contributions for private use are deducted from the taxable figure.

Reliable data not available for cars registred before 01/01/98. For cars registered before 01/01/98 the percentages are based on engine size:

	Petrol	Diesel
Up to 1,400cc	15%	18%
1401 - 2,000cc	25%	28%
Over 2,000cc	35%	35%

Approved mileage rates

2006/07 to 2007/08	First 10,000 business miles in the tax year	Each mile over 10,000 miles in the tax year
Cars and vans	40p	25p
Motorcycles	24p	24p
Bicycles	20p	20p

Fuel Scale Charges

Company car fuel
To calculate the benefit charge on free fuel the percentage figure will be multiplied against a set figure for the year.
2006/07 the set figure is £14,400
2007/08 the set figure is £14,400

Example
If car benefit percentage is 23%, the fuel benefit would be £14,400 x 23% = £3,312

Company car tax

The CO₂ emissions qualifying for the minimum petrol percentage (15%) charge are:
2006/07 140 grams of CO₂ per kilometre
2007/08 140 grams of CO₂ per kilometre
2008/09 140 grams of CO₂ per kilometre

[ previous ] | [ next ]

Home | Disclaimer | Privacy