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 (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.
|VED Band||Emissions (g/km of CO2)||Standard Rate*||First Year Rate|
|A||Up to 100g/km||£0||£0|
*Alternative fuel car discount: £10 on all cars.
Commercial vehicles (including pickup trucks) pay a fixed rate of £230.00.
2017 VED Changes
Cars registered on or after 1st April 2017 will be subject to the following:
|Emissions (g/km of CO2)||First Year Rate||Standard Rate|
Cars with a value of over £40,000 (including cost options, such as metallic paint) pay an annual £310 supplement for five years
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|
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.