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These rates are used to calculate car and fuel benefits-in-kind for directors and employees (earning over £8,500 per annum) where private use of company cars and fuel is paid for by the company. 
 

 

Car & Fuel Benefits


Company cars 2008/09
CO2 emissions (gm/km) (round down to nearest 5gm/km)
% of car’s list price taxed
Fuel benefit (£16,900 x %)
up to 135
15
2,535
140
16
2,704
145
17
2,873
150
18
3,042
155
19
3,211
160
20
3,380
165
21
3,549
170
22
3,718
175
23
3,887
180
24
4,056
185
25
4,225
190
26
4,394
195
27
4,563
200
28
4,732
205
29
4,901
210
30
5,070
215
31
5,239
220
32
5,408
225
33
5,577
230
34
5,746
235 and above
35
5,915

Company cars
  • For diesel cars add a 3% supplement but maximum still 35%. Euro IV diesel cars registered before 1 January 2006 do not suffer the 3% supplement.
  • Discounts apply to certain environmentally friendly cars.
  • From 2008/09 a new 10% rate applies to non-electric cars with emissions of no more than 120gm/km. Environmentally friendly discounts do not apply to these cars but the diesel supplement does.
  • For cars registered before 1 January 1998 the charge is based on engine size.
  • The list price includes accessories and is subject to an upper limit of £80,000.
  • The list price is reduced for capital contributions made by the employee up to £5,000.

Fuel benefits

  • The fuel benefit charge is proportionately reduced if provision of private fuel ceases part way through the year.
  • The fuel benefit is reduced to nil only if the employee pays for all private fuel.
Van benefit per vehicle (2008/09 and 2007/08)

Van Benefit: £3,000
Fuel Benefit: £500

The charges will not apply if a ‘restricted private use condition’ is met throughout the year.