Company Car & Van Tax Table – 2018/19 to 2020/21

Remember to add an extra 4% for any diesel vehicle that doesn't meet the new RDE2 test standards

Company cars and vans like many business benefits are taxed, this is called Benefit-In-Kind (BIK) Tax. As company vehicles are an additional taxable benefit they fall outside of your standard National Insurance tax contributions. The amount of company car tax that you will pay is based on a range of factors, including annual earnings, the cost of the car and the amount of carbon dioxide (CO2) emitted.

Calculating Company Van Tax

Do I have to pay company van tax? is a question often asked by fleet van and pickup drivers, the answer is not a straightforward yes or no. An employee is only liable for Van Benefit Charge if he or she uses the company vehicle for private use or commuting to a fixed workplace, such as a head office. If an employee solely uses the vehicle for business trips such as a journey to an appointment or to a temporary workplace, then they are not liable for company van tax.

Pool vans are also subject to a tax exemption if they meet the following categories:

  • Available for use and used by more than 1 employee.
  • Available to each employee because they need it to do their job.
  • Not ordinarily used by 1 employee to the exclusion of others.
  • Not normally kept at or near employees’ homes.
  • Used only for business journeys – limited private use is allowed, but only if it’s incidental to a business journey, for example driving home to allow an early start the next morning.

The benefit in kind charge for Vans is currently set at a fixed rate of £3350 for the 2018/19 tax year, this means that any van or pickup that falls under personal use will we subject to a payment of £670 for a 20% taxpayer and £1340 for a 40% taxpayer.

This is set to rise for the Tax Years 2019/20 and 2020/21, with the benefit in kind charge rising to £3430, with the new Van Benefit Charge being £686 and £1372 respectively.

ExampleFord Ranger 3.2 TDCI Double Cab 4×4 Limited 1 200ps Auto

Tax year to 5th April 2018/19 2019/20 2020/21
Benefit in kind £3,350 £3,430 £3,430
Tax payable at 20% £670 £686 £686
Tax payable at 40% £1,340 £1,372 £1,372

Calculating Company Car Tax

Every car has a BIK percentage band. This is based on CO2 emissions, and a P11D value, which is the list price, including extras and VAT, but without the first-year registration fee and vehicle tax.

Using the table below, multiple the P11D value of the vehicle by the car (BIK) tax band percentage rate then, multiply that figure by your marginal rate of tax (20% or 40%).

ExampleAudi A3 Sportback 2.0 TFSI Sport 190ps

Co2 Emissions of 129 equates to a Taxable Percentage of 26%

Multiple £23,400 by 26% (Taxable Percentage) to calculate the payable BIK = £6,941

Then multiple £6,941  by your tax band:

Tax payable 20%: £1,388

Tax payable 40%: £2,776

Should the CO2 emissions of your company car fall between CO2 bandings, simply round the number down to work out the company car tax band that applies.

The Diesel supplement

Remember to add an extra 4% below to the taxable percentage of the p11D value for any diesel vehicle that doesn’t meet the new RDE2 test standards (There are currently no vehicles that meet this standard).

Company Car Tax Table

                                                                                                                                                                                       Taxable Percentage of P11D Value

 CO2 Emissions
(g/km)
 Electric Range
(miles)
 2018/2019  2019/2020  2020/2021
 0  N/A  13  16  2
 1 – 50  >130  13  16  2
1 – 50  70 – 129  13  16  5
1 – 50  40 – 69  13  16  8
1 – 50  30 – 39  13  16  12
1 – 50  <30  13  16  14
 51 – 54  16  19  15
 55 – 59  16  19  16
 60 – 64  16  19  17
 65 – 69  16  19  18
 70 – 74  16  19  19
 75 – 79  19  22  20
 80 – 84  19  22  21
 85 – 89  19  22  22
 90 – 94  19  22  23
95 – 99  20  23  24
100 – 104  21  24  25
105 – 109  22  25  26
110 – 114  23  26  27
115 – 119  24  27  28
120 – 124  25  28  29
125 – 129  26  29  30
130 – 134  27  30  31
135 – 139  28  31  32
140 – 144  29  32  33
145 – 149  30  33  34
150 – 154  31  34  35
155 – 159  32  35  36
160 – 164  33  36  37
 165 – 169  34  37  37
170 – 174  35  37  37
175 – 179  36  37  37
180 – 184  37  37  37
185 – 189  37  37  37
190 or over  37  37  37

Gofor Finance – Online Tax Calculator

Don’t want to use the table above? Gofor easy to use online company car tax calculator allows you to minimise company car tax and will allow you to find out the exact implications of your choice of car on your pocket.

The online calculator will allow you to calculate more than just your vehicle benefit tax, it will also provide fuel benefit tax, P11D value, corporation tax and Co2 emissions.

Online Tax Calculator 

Looking for more information on Company Car Tax or just looking for more Fleet information? Our Fleet specialists are here to help, get in touch today.

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