Pocket Car Tax
| Rate | Band |
|---|---|
| 10% | £1 to £2,230 |
| 22% | £2,231 to £34,600 |
| 40% | Over £34,600 |
National Insurance Contributions (Class 1)
| Weekly Pay | Employees Contributions | Employers Contributions |
|---|---|---|
| Up to £87.00 | Nil | Nil |
| £87.01 to £670.00 | 11% | 12.8% |
| Over £670.00 | 1% | 12.8% |
Class 1A NIC
Employers pay 12.8% on cars or fuel provided for the private use of
employees. The liability is calculated on the taxable benefit of the
car or fuel.
| 2004/2005 | First 10,000 Business Miles | Excess over 10,000 Business Miles |
|---|---|---|
| All Cars and Vans | 40p | 25p |
| Motorcycles | 24p | 24p |
| Bicycles | 20p | 20p |
Scale Charges for Car P11D Payments
| CO2 emissions (g/km) | 2007/08 |
2008/09 |
|---|---|---|
| Under 120 | 15% | 10% |
| 135 | 15% | 15% |
140 |
15% |
16% |
145 |
16% |
17% |
150 |
17% |
18% |
155 |
18% |
19% |
160 |
19% |
20% |
165 |
20% |
21% |
170 |
21% |
22% |
175 |
22% |
23% |
180 |
23% |
24% |
185 |
24% |
25% |
190 |
25% |
26% |
195 |
26% |
27% |
200 |
27% |
28% |
205 |
28% |
29% |
210 |
29% |
30% |
215 |
30% |
31% |
220 |
31% |
32% |
225 |
32% |
33% |
230 |
33% |
34% |
235 |
34% |
35% |
240 and over |
35% |
35% |
Percentages are applied against the Retail Price of the vehicle, as at the day before the vehicle is registered. Note that the CO2 emissions figure for a vehicle should be rounded down to the nearest 5 grams per kilometre.
Diesel Supplements
A 3% surcharge for diesel vehicles is added to the percentages shown
in the above table, but the percentages must never exceed 35%.
Alternative Fuels
| Type | Standard Adjustment | Additional Adjustment |
|---|---|---|
Electric |
6% discount |
None |
Hybrid Petrol / Electric |
3% discount |
None |
Gas only |
2% discount |
None |
Bi-fuel |
2% discount |
None |
Bi-fuel conversion |
0% |
Abolished from 2006 / 2007 |
Fuel Scale Charges
To calculate the benefit charge on free fuel the percentage
figure will be multiplied against a set figure for the year.
The figure used as the basis for fuel calculations is £16,900.
So, if the car benefit percentage for the year is 23%, the free fuel
benefit is calculated as £16,900 times 23% = £3,887. Diesel
supplements and discounts should be included in the calculation.
Capital Allowances
With effect from April 2009, the capital allowance treatment of all cars will be reformed to favour those cars with low CO2 emissions. Expenditure on cars with CO2 emissions above 160g/km will attract 10% writing down allowanc (WDA), while expenditure on cars with CO2 emissions of 160g/km or below will attract 20% WDA. However, cars above 160g/km will have a proportion of their car lease rental payments disallowed. The new disallowance will be 15% of the relevant payments.
| Standard Rate | 17.5% |
| VAT as a fraction of the inclusive price | 7 / 47 |
Band |
Profit |
Rate |
|---|---|---|
Small Companies Rate |
Up to £300,000 |
20% |
| Marginal Small Companies Fraction | Up to £1,500,000 | 1/40th |
Standard Rate |
Over £1,500,000 |
30% |
Vehicle Excise
Duty Rates
Annual rates for cars registered after 01 March 2001.
| VED Band | CO2 Emission Level (g/km) | Diesel (TC49) |
Petrol (TC48) |
Alternative (TC59) |
|---|---|---|---|---|
A |
Up to 100 |
£FREE |
£FREE |
£FREE |
B |
101 to 120 |
£35.00 |
£35.00 |
£15.00 |
C |
121 to 150 |
£120.00 |
£120.00 |
£100.00 |
D |
151 to 165 |
£145.00 |
£145.00 |
£125.00 |
E |
166 to 185 |
£170.00 |
£170.00 |
£150.00 |
F |
185 to 225 |
£210.00 |
£210.00 |
£195.00 |
G |
Over 225 |
£400.00 |
£400.00 |
£385.00 |
Group A and Group B vehicles must be taxed for 12 months. Bioethanol vehicles or high blend bioethanol vehicles (over 85% bioethanol content) can be taxed as Alternative.
Last updated:26 Match 2008
