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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 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
Emissions (g/km of CO₂)	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.