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Guide to Business & Personal Vehicle Tax

Guide to Business & Personal Vehicle Tax

uk carline business and personal car tax guide

Vehicle Excise Duty 2019

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 2018 will be subject to the following:

Emissions (g/km of CO₂)	Standard Rate	First Year Rate	First Year Diesel Rate
0	£0	£0	£0
1-50	£140	£10	£25
51-75	£140	£25	£105
76-90	£140	£105	£125
91-100	£140	£125	£145
101-110	£140	£145	£165
111-130	£140	£165	£205
131-150	£140	£205	£515
151-170	£140	£515	£830
171-190	£140	£830	£1,240
191-225	£140	£1,240	£1,760
226-255	£140	£1,760	£2,070
Over 255	£140	£2,070	£2,070

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)	Electric Range (miles)	2018-19		2019-20		2020-21
Emissions (g/km of CO₂)	Electric Range (miles)	Petrol/Electric	Diesel	Petrol/Electric	Diesel	Petrol/Electric	Diesel
0	N/A	13	N/A	16	N/A	2	N/A
1-50	130+	13	N/A	16	N/A	2	N/A
1-50	70-129	13	N/A	16	N/A	5	N/A
1-50	40-69	13	N/A	16	N/A	8	N/A
1-50	30-39	13	N/A	16	N/A	12	N/A
1-50	Under 30	13	N/A	16	N/A	14	N/A
51-54	N/A	16	N/A	19	N/A	15	N/A
55-59	N/A	16	N/A	19	N/A	16	N/A
60-64	N/A	16	N/A	19	N/A	17	N/A
65-69	N/A	16	N/A	19	N/A	18	N/A
70-74	N/A	16	N/A	19	N/A	19	N/A
75	N/A	16	N/A	19	N/A	20	N/A
76-79	N/A	19	23	22	26	20	24
80-84	N/A	19	23	22	26	21	25
85-89	N/A	19	23	22	26	22	26
90-94	N/A	19	23	22	26	23	27
95-99	N/A	20	24	23	27	24	28
100-104	N/A	21	25	24	28	25	29
105-109	N/A	22	26	25	29	26	30
110-114	N/A	23	27	26	30	27	31
115-119	N/A	24	28	27	31	28	32
120-124	N/A	25	29	28	32	29	33
125-129	N/A	26	30	29	33	30	34
130-134	N/A	27	31	30	34	31	35
135-139	N/A	28	32	31	35	32	36
140-144	N/A	29	33	32	36	33	37
145-149	N/A	30	34	33	37	34	37
150-154	N/A	31	35	34	37	35	37
155-159	N/A	32	36	35	37	36	37
160-164	N/A	33	37	36	37	37	37
165-169	N/A	34	37	37	37	37	37
170-174	N/A	35	37	37	37	37	37
175-179	N/A	36	37	37	37	37	37
180+	N/A	37	37	37	37	37	37

To calculate how much tax you'd have to pay on a company car please use the method below:

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.