Car Benefit Value
If you’re an employer and provide expenses or benefits to employees or directors, you must usually:
- Report them to HM Revenue and Customs (HMRC)
- Pay tax and National Insurance on them
Examples of expenses and benefits include:
- Company cars
- Health insurance
- Travel and entertainment expenses
- Childcare
Company cars and fuel
As an employer providing company cars and fuel to your employees, you have certain National Insurance and reporting obligations.
You’ll usually need to report:
- Company cars used for private journeys
- Fuel for private journeys
- Fuel for volunteer work
- Company cars for employees working from home during coronavirus (COVID-19)
What’s exempt
- Privately owned cars
- Cars available for business journeys only
- Cars adapted for an employee with a disability
- Fuel that employees pay for
- ‘Pool’ cars
What to report and pay
- Cars for private use
- Fuel for private use
- Fuel for volunteer work
- Company cars for employees working from home during coronavirus (COVID-19)
How to work out the car benefit value:
Car benefit value mainly depends on:
- Co2 Emission
- Electric Mileage
- Fuel Type
Below table shows the fuel types and percentage (%) of benefit on the list price:
| Fuel Types | |
| F | Diesel cars which meet Euro 6d standard |
| D | All other diesel cars |
| A | All other cars |
| P11D Table | |||
|---|---|---|---|
| Co2 Emission | Electric Range | Fuel Type A&F | Fuel Type D |
| 0-0 | #NA | 2% | 6% |
| 1-50 | >= 130 | 2% | 6% |
| 1-50 | 70-129 | 5% | 9% |
| 1-50 | 40-69 | 8% | 12% |
| 1-50 | 30-39 | 12% | 16% |
| 1-50 | <30 | 14% | 18% |
| 51-54 | 15% | 19% | |
| 55 | 16% | 20% | |
| 60 | 17% | 21% | |
| 65 | 18% | 22% | |
| 70 | 19% | 23% | |
| 75 | 20% | 24% | |
| 80 | 21% | 25% | |
| 85 | 22% | 26% | |
| 90 | 23% | 27% | |
| 95 | 24% | 28% | |
| 100 | 25% | 29% | |
| 105 | 26% | 30% | |
| 110 | 27% | 31% | |
| 115 | 28% | 32% | |
| 120 | 29% | 33% | |
| 125 | 30% | 34% | |
| 130 | 31% | 35% | |
| 135 | 32% | 36% | |
| 140 | 33% | 37% | |
| 145 | 34% | 37% | |
| 150 | 35% | 37% | |
| 155 | 36% | 37% | |
| 160 | 37% | 37% | |
| 165 | 37% | 37% | |
| >=170 | 37% | 37% | |
| P11D Calculation Examples | |||
|---|---|---|---|
| Car Type | Fully Electric | Hybrid | Diesel |
| List Price | 60,000.00 | 60,000.00 | 60,000.00 |
| Capital Contribution by Employee | – | – | – |
| Date first Registered | After 06.04.2020 | After 06.04.2020 | After 06.04.2020 |
| Fuel Type | A | A | D |
| Approved CO2 emission | 0 | 50 | 95 |
| Electric Mileage | NA | 62 | NA |
| Applicable P11D % | 0.02 | 0.08 | 0.28 |
| P11d Value | 12.00 | 48.00 | 168.00 |
| Company ER NIC (13.8%) | 1.66 | 6.62 | 23.18 |
| Individual Tax | |||
| If Basic Rate (20%) | 2.40 | 9.60 | 33.60 |
| If Higher Rate (40%) | 4.80 | 19.20 | 67.20 |