Fuel Benefit
Car fuel benefit
Any employee or company director, who is provided with a company car and fuel for private is liable to pay tax based on the fuel benefit.
This is based on a fixed sum of £18,800 from April 2011 and the benefit in kind is calculated by applying the percentage determined by the CO2 emission table below.
| CO2 emissions | Taxable % of list price | ||
|---|---|---|---|
| Rated in g/km | 2010/11 | 2011/12 | 2012/13 |
| 0 | 0 | 0 | 0 |
| 1-75 | 5 | 5 | 5 |
| 76-99 | 10 | 10 | 10 |
| 100-104 | 10 | 10 | 11 |
| 105-109 | 10 | 10 | 12 |
| 110-114 | 10 | 10 | 13 |
| 115-119 | 10 | 10 | 14 |
| 120-124 | 15 | 15 | 15 |
| 125-129 | 15 | 15 | 16 |
| 130-135 | 15 | 16 | 17 |
| 135-139 | 16 | 17 | 18 |
| 140-144 | 17 | 18 | 19 |
| 145-149 | 18 | 19 | 20 |
| 150-154 | 19 | 20 | 21 |
| 155-159 | 20 | 21 | 22 |
| 160-164 | 21 | 22 | 23 |
| 165-169 | 22 | 23 | 24 |
| 170-174 | 23 | 24 | 25 |
| 175-179 | 24 | 25 | 26 |
| 180-184 | 25 | 26 | 27 |
| 185-189 | 26 | 27 | 28 |
| 190-194 | 27 | 28 | 29 |
| 195-199 | 28 | 29 | 30 |
| 200-204 | 29 | 30 | 31 |
| 205-209 | 30 | 31 | 32 |
| 210-214 | 31 | 32 | 33 |
| 215-219 | 32 | 33 | 34 |
| 220-224 | 33 | 34 | 35 |
| 225-229 | 34 | 35 | 35 |
| 230 or over | 35 | 35 | 35 |
Diesel vehicles attract a 3% surcharge to the above figures, up to a maximum of 35%.
Example
An employee is provided with a new company car on 1st April 2010. The car is a new Audi A3 2.0 TDI Sport 3dr Manual, with a P11D price of £19,920 and CO2 emissions of 115g/km.
To calculate the car fuel benefit, we take the scale charge of £18,800 and multiply this by the equivalent percentage for the vehicle, above.
£18,800 x (10% + 3% diesel surcharge) = £2,340 taxable benefit per year.
To calculate how much tax the employee will pay per year, this figure is multiplied by the employees tax level:
For a 20% taxpayer:
£2,340.00 × 20% = £468.00 per year or £39.00 per month
For a 40% taxpayer:
2,340.00 × 40% = £936.00 per year or £78.00 per month