Vehicles

These taxable benefits generally arise on employees earning £8,500 or over (including benefits) and directors.  Company Car Benefit is calculated as a percentage (based on the car's CO2 emmissions rounded down to next multiple of 5) of the car's UK lisst price.  thenormal minimum rate is 15%.  Diesel cars generally sugger a 3% supplement on top of th CO2 emmissions based percentage.  the maximum rate of all cars is 35%.  Special rules apply to certain environmentally friendly cars.

Company Car Fuel Benefit is charged unless the cost of all fuel for private use is borne by the employee.  the taxable benefit is calculated by applying the appropriate car enefit to £18,800.  where VAT is to be reclaimed on fuel for private use, the employer also has to account for output tax based on a fuel scale charge derived from teh vehicle's CO2 emmissions (see table below).

Company Van Benefit is not related to CO2 emissions but is a set fugure of £3,000 with an extra £550 where fuel for private use is provided.  There is no benefit charge for certain environmentally friendly wans or where the restricted private use condition is met.

Mileage Rates for Employees using their own Cars for Business: approved rates are 45p per mile for the first 10,000 miles and 25p thereafter.  Income tax and NIC's may be due on higher rates and tax relief may be due on lower rates.

VAT fuel Scale Charges for 3 months return period beginning on or after 1 May 2011 (round CO2 emissions down to next multiple of 5)