Quick Menu:
- Car Benefit
- Car Fuel Benefit
- Van Benefit
- Advisory Fuel Rates for Company Cars
- Mileage Allowance Payments for Employees
Car Benefit
The car benefit is calculated by multiplying the car's list price, when new, by a percentage linked to the car's CO2 emissions.
For diesel cars generally add a 4% supplement (unless the car is registered on or after 1 September 2017 and meets the Euro 6d emissions standard).
The overall maximum percentage is capped at 37%.
The list price includes accessories.
The list price is reduced for capital contributions made by the employee up to £5,000.
Special rules may apply to cars provided for disabled employees.
2024/25 and 2023/24:
| CO2 emissions (gm/km) | % of car's price taxed |
|---|---|
| 0 | 2 |
| 1-50: Electric range >130 | 2 |
| 1-50: Electric range 70-129 | 5 |
| 1-50: Electric range 40-69 | 8 |
| 1-50: Electric range 30-39 | 12 |
| 1-50: Electric range <30 | 14 |
| 51-54 | 15 |
| 55-59 | 16 |
| 60-64 | 17 |
| 65-69 | 18 |
| 70-74 | 19 |
| 75-79 | 20 |
| 80-84 | 21 |
| 85-89 | 22 |
| 90-94 | 23 |
| 95-99 | 24 |
| 100-104 | 25 |
| 105-109 | 26 |
| 110-114 | 27 |
| 115-119 | 28 |
| 120-124 | 29 |
| 125-129 | 30 |
| 130-134 | 31 |
| 135-139 | 32 |
| 140-144 | 33 |
| 145-149 | 34 |
| 150-154 | 35 |
| 155-159 | 36 |
| 160 and above | 37 |
Car Fuel Benefit
Car fuel benefit applies if an employee has the benefit of private fuel for a company car.
The benefit is calculated by applying the percentage used to calculate the car benefit by a 'fuel charge multiplier'.
The 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.
Fuel charge multiplier: £27,800
Van Benefit
Van benefit is chargeable if the van is available for an employee's private use.
A fuel benefit may also be chargeable if an employee has the benefit of private fuel paid for in respect of a company van.
The charges do not apply to vans if a 'restricted private use condition' is met throughout the year.
A reduced benefit charge may apply to vans which cannot emit CO2 when driven.
Van benefit: £3,960
Fuel benefit: £757
Advisory Fuel Rates for Company Cars
Advisory rates only apply where employers reimburse employees for business travel in a company car or require employees to repay the cost of fuel used for private travel in a company car.
If the rate paid per mile of business travel is no higher than the advisory rate for the particular engine size and fuel type of the car, HMRC will accept that there is no taxable profit and no Class 1 NIC liability.
From 1 September 2024:
Petrol
| Engine size (cc) | Pence per mile |
|---|---|
| 1400 or less | 13 |
| 1401 to 2000 | 15 |
| Over 2000 | 24 |
Diesel
| Engine size (cc) | Pence per mile |
|---|---|
| 1600 or less | 12 |
| 1601 to 2000 | 14 |
| Over 2000 | 18 |
LPG
| Engine size (cc) | Pence per mile |
|---|---|
| 1400 or less | 11 |
| 1401 to 2000 | 13 |
| Over 2000 | 21 |
Notes...
- Hybrid cars are treated as either petrol or diesel cars for this purpose.
- The Advisory Electricity Rate for fully electric cars is 7p per mile. Electricity is not a fuel for car fuel benefit purposes.
Mileage Allowance Payments (MAPs) for employees
MAPs represent the maximum tax free mileage allowances an employee can receive from their employer for using their own vehicle for business journeys.
An employer is allowed to pay an employee a certain amount of MAPs each year without having to report payments to HMRC.
If the employee receives less than the statutory rate, tax relief can be claimed on the difference.
2024/25 and 2023/24:
| Vehicle type | Pence per mile | |
|---|---|---|
| Cars and vans | - up to 10,000 miles | 45 |
| - over 10,000 miles | 25 | |
| Bicycles | 20 | |
| Motorcycles | 24 | |
