Car & Fuel Benefits

Tax year 2020-2021

Car Scale Benefits

Benefit is based on 0% to 37% of list price, dependent on Co2 Emissions

Co2 emissions (gm/km) (round down to nearest 5gm/km)	ELECTRIC range (Miles)	FY 2020-21 % BIK RATE Petrol, Electric, RDE2 Diesel	Non-RDE2 Diesel
1-50	130+	0
1-50	70-129	3
1-50	40-69	6
1-50	30-39	10
1-50	<30	12
51 to 54		13
55 to 59		14
60 to 64		15
65 to 69		16
70 to 74		17
75 to 79		18	22
80 to 84		19	23
85 to 89		20	24
90 to 94		21	25
95 to 99		22	26
100 to 104		23	27
105 to 109		24	28
110 to 114		25	29
115 to 119		26	30
120 to 124		27	31
125 to 129		28	32
130 to 134		29	33
135 to 139		30	34
140 to 144		31	35
145 to 149		32	36
150 to 154		33	37
155 to 159		34	37
160 to 164		35	37
165 to 169		36	37
170+		37	37

* Rounding down to the nearest 5gm/km does not apply

Company Cars

For diesel cars add 4% supplement but maximum 37%.

From 6 April 2020:

Eleven new lower bands, including a separate zero-emissions band, are introduced for the low CO2 emitting cars to incentivize purchases of ultra-low emissions vehicles (ULEV).
Cars with zero emissions and purchased after 5 April 2020 attract £nil car benefit charge.
Cars emitting between 1g/km and 50g/km of CO2 have a graduated range of bands based on the electric mileage range of the car.
If a car has an emission figure of 1-50g/km you also need to provide the car’s zero-emission mileage: the distance that the car can travel in miles on a single electric charge
The appropriate percentage for cars emitting greater than 90g/km will rise by 1%
Legislation was included in Finance (No2) Act 2017 to introduce these changes.

Included in draft Finance Bill 2020:

That the measure for CO2 emission is changed for cars registered from 6 April 2020 from the NEDC system to the WLTP system.
The government anticipates that this will increase company car tax though most appropriate percentages will be reduced by 2% in 2020/21 before increasing by 1% in 2021/22 and 1% in 2022/23.
Zero-emission company cars will attract a reduced appropriate percentage, depending on their date of registration to a maximum of 0% in 2020/21, 1% in 2021/22, before returning to the planned 2% rate in 2022/23. See Co2 Ultra-Low Emissions cars.

Car Fuel Benefit

The fuel benefit is a percentage of £24,500. The percentage used to calculate the taxable benefit of the car for which the fuel is provided.

The charge does not apply to certain environmentally friendly cars

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.

Private use of Company Vans

Vans available for private use – Taxable benefit = £3,490.00

A further charge of £666.00 for private use of fuel is chargeable if applicable.