Copyright © vap 2010.  All rights reserved.

 I Tax allowances

 Income tax rates

 PAYE codes

 National insurance

 Pension age

 National Min Wage

 Statutory payments

 Capital allowances

 VAT

 Capital gains tax

 Tax credits

 Car & fuel benefits

 Free fuel

 Van benefit

 Inheritance Tax

 Stamp Duty/ATED

 Pension/miscellany Tax deadlines

 Accounts deadlines



vap

chartered certified accountants

CLIENTS page

Jok es

CLIENTS page


Home         Solutions         News         Resources         Contact Us
Jokes

Start-Ups

Benefit in kind - CO2 bands by tax year


Emissions

CO2 g/km


2018/19 petrol car

2018/19 diesel car

2019/20 petrol car

2019/20

diesel car

0-50

13%

17%

16%

20%

51-75

16%

20%

19%

23%

76-94

19%

23%

22%

26%

95-99

20%

24%

23%

27%

100-104

21%

25%

24%

28%

105-109

22%

26%

25%

29%

110-114

23%

27%

26%

30%

115-119

24%

28%

27%

31%

120-124

25%

29%

28%

32%

125-129

26%

30%

29%

33%

130-134

27%

31%

30%

34%

135-139

28%

32%

31%

35%

140-144

29%

33%

32%

36%

145-149

30%

34%

33%

37%

150-154

31%

35%

34%

37%

155-159

32%

36%

35%

37%

160-164

33%

37%

36%

37%

165-169

34%

37%

37%

37%

170-174

35%

37%

37%

37%

175-179

36%

37%

37%

37%

180-184

37%

37%

37%

37%


Notes


1. In Autumn 2017 budget, it was announced that the diesel car supplement would be increased from 3% to 4%, up to a maximum of 37%, from 6.4.2018. The diesel car supplement does not apply to cars that meet the Real Driving Emissions 2 conditions OR to diesel hybrid cars.


2. The petrol car rates for 2018/19 above will increase in most cases by 3% for 2019/20 (plus 4% supplement for non-RDE2 diesel cars).


3. From 2020/21 BIK car tax bands for electric vehicles and hybrids emitting less than 50 g/km CO2 will be taxed based on how far a vehicle can travel on electric power only. For electric vehicles the rate will be 2% and for hybrids between 2% (for electric range of over 130 miles) to 14% (for electric range of less than 30 miles). For cars with CO2 emissions above 50 g/km, the rates will start at 14% and increase by 1% for every 5 g/km CO2 with a maximum of 37% for cars with CO2 emissions of 160 g/km.


4. Maximum rate is 37% for CO2 emissions >= 180g/km.

Company cars and tax

Most employees/directors provided with a company car are taxed on them as a benefit in kind.


Employee tax - Car benefit

The car benefit is based on a car’s P11D price list price and its CO2 emissions.

List price - this is the price published by the manufacturer and includes the list price of accessories fitted on delivery (and accessories fitted later if more than £100). It includes delivery charges, tax and VAT, but not RFL or first car registration fee.

CO2 emissions - this figure is obtained from the V5 registration document or visit VCA - www.vca.gov.uk


To work out the benefit, use the table below as a guide.


For example, suppose you are provided with a company car -

2018 BMW 330e PHEV(hybrid) 2.0 M Sport Auto 4 door saloon. CO2 emissions = 49 g/km. List price £38,805. P11D value £38,750. Capital contribution = nil. Accessories fitted - total £1,525.


Car benefit and tax calculation - 2018/19

example

1

P11D value of car

£38,750

2

Add: accessories

£1,525

3

Less: capital contribution

£0

4

Price for car benefit  = 1 + 2 - 3

£40,275

A

CO2 emissions from V5 document

49 g/km

B

Taxable % from table opposite

13%

X

Taxable benefit = 4 x B (£40,275x13%)

£5,236

Y

Tax at 20% tax rate =  £5,236 x 20%

£1,047 per yr

£87.26 p mth

Z

Tax at 40% tax rate =  £5236 x 40%

£2,094 per yr

£174.53 p mth

Employee tax - Fuel benefit

If free fuel is provided by an employer on a company car, an employee  will be taxed on the value of the benefit, unless all fuel for private journeys is reimbursed. The value of the benefit is calculated by applying the taxable % rate calculated in box B above for car benefit  to an annual multiplier. For 2019/20, the annual multiplier is £24,100 (2018/19 - £23,400). In the example above, the fuel benefit for 2018/19 will be £23,400 x 13% = £3,042. Tax at 20% on this is £608 and at 40% £1,217. Is free fuel worth it?


Employer Tax - Class 1A NIC

Besides the employee being taxed, the employer will also be charged to Class 1A National Insurance on the taxable value of the car and fuel benefit. In the example above, the taxable value of car and fuel benefit totals £5,236 + £3,042 = £8,278. The NIC rate for 2018/19 is 13.8%, so the Class 1A NIC charge will be £8,278 x 13.8% = £1,142. This is payable after the tax year in July. What about VANS?



Car Benefits