Vehicle Benefits

Chargeable on employees earning £8,500 or over (including benefits), and directors.

• Car Benefit
• Van Benefit
• Car Fuel Benefits

Car Benefit

Car benefit charges are calculated on a percentage of the list price of the car appropriate to the level of the car's CO2 emissions, as follows:

• 15% of the list price of cars emitting up to 144 g/km in 2007/08 (emissions of carbon dioxide per kilometre);
• increased by 1% per 5 g/km over the 145 limit;
• capped at 35% of the list price

If the exact CO2 emissions figure does not end in 0 or 5, it should be rounded down to the nearest 5 g/km

There is a 3% supplement on diesel cars (subject to a 35% cap) and discounts for cars using alternative fuels and technologies.

Diesel Supplement Notes

1. Add 3% if car runs solely on Diesel
2. Add 2% if car runs solely on Diesel
3. Add 1% if car runs solely on Diesel
4. Maximum charge, so no diesel supplement.

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:

Van Benefit

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, for this see VAT.