uk carline business and personal car tax guide

UK Carline Guide to Business & Personal Vehicle Tax

On this page we will briefly explain the following (click to jump to section):

Vehicle Excise Duty 2017

Vehicle Excise Duty (VED) is an alternative term for Road Fund License (RFL), or Car Tax. This is built into your monthly rentals, so you don't need to worry.

As illustrated below, cars with lower emissions pay less.

Cars registered on or after 1st April 2017 will be subject to the following:

Emissions (g/km of CO2) First Year Rate Standard Rate
0 £0 £0
1-50 £10 £140
51-75 £25 £140
76-90 £100 £140
91-100 £120 £140
101-110 £140 £140
111-130 £160 £140
131-150 £200 £140
151-170 £500 £140
171-190 £800 £140
191-225 £1200 £140
226-255 £1700 £140
Over 255 £2000 £140

Cars with a value of over £40,000 (including cost options, such as metallic paint) pay an annual £310 supplement for five years

Company Vehicle Benefit in Kind (BIK)

Benefits in Kind (BIK) are benefits which directors or employees receive from employment which are not included in their salary or wages. Sometimes these are also called "perks" or "fringe benefits". A company car is seen as a major perk by the taxman: and as soon as you use it for a personal reason (including commuting), it is viewed as a taxable payment.

Taxable Percentage of P11d value
Emissions (g/km of CO2) 2017-18 2018-19 2019-20
Petrol Diesel Petrol Diesel Petrol Diesel
0-50 9 9 13 13 16 16
51-75 13 13 16 16 19 19
76-94 17 20 19 22 22 25
95-99 18 21 20 23 23 26
100-104 19 22 21 24 24 27
105-109 20 23 22 25 25 28
110-114 21 24 23 26 26 29
115-119 22 25 24 27 27 30
120-124 23 26 25 28 28 31
125-129 24 27 26 29 29 32
130-134 25 28 27 30 30 33
135-139 26 29 28 31 31 34
140-144 27 30 29 32 32 35
145-149 28 31 30 33 33 36
150-154 29 32 31 34 34 37
155-159 30 33 32 35 35 37
160-164 31 34 33 36 36 37
165-169 32 35 34 37 37 37
170-174 33 36 35 37 37 37
175-179 34 37 36 37 37 37
180-184 35 37 37 37 37 37
185+ 37 37 37 37 37 37

To calculate how much tax you'd have to pay on a company car click here for a Benefit in Kind calculator, or:

  • Get your car's P11D value: list price combined with VAT, delivery, cost options, & registration.
  • Multiply the P11D value by the vehicle's company car tax rate (illustrated in the table above) to get your Benefit in Kind amount.
  • Multiply your Benefit in Kind amount by your personal tax rate to get your company car tax payable.