Company cars

Company cars with high carbon dioxide emissions, or that use diesel fuel, are becoming increasingly punitive from a tax perspective. The P11D benefit for the lowest emitting vehicles rose from 9% to 13% for the current tax year. The maximum possible car benefit charge is 37%.

If you are an employee and your current vehicle is coming to the end of its contract, you may wish to consider a more efficient vehicle, or owning or leasing privately and recharging your company for your business miles.

If your employer pays for your fuel and you do not reimburse for private mileage, you should review whether this is tax efficient for you. For the 2019 tax year, the taxable fuel benefit is calculated by reference to the car benefit percentage multiplied by £23,400, and is generally punitive.

Vehicles that qualify as vans can be more tax efficient for both vehicle and fuel benefit charge purposes.

Electricity supplied by a workplace to charge electric vehicles has been exempt from being a taxable benefit from April 2018.