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Company Car Tax Guide
A guide to company car tax for drivers
Company car tax is designed to do two things. Firstly, to reflect the benefit of you having a car for private use. And secondly, to encourage you to choose a more environmentally-friendly vehicle.
 
With road transport responsible for about 20% of all emissions, the Government is committed to encouraging drivers to choose greener vehicles. That’s why the amount of company car tax you have to pay is directly related to the amount of C02 produced by your car (measured in grams per kilometre - g/km).
 
For a quick way to discover how much you will have to pay, go to our company car tax calculator.
 
In addition, all Ford vehicles are listed with their official emissions banding here.
How company car tax works
You pay company car tax on a percentage of the P11D value of your car.

The P11D value is the manufacturer’s new price, plus VAT, delivery, number plates and any optional extras.

The percentage of the P11D value you pay tax on is decided by the CO2 emissions of your car and fuel type. To find your emissions figure, you can either look at the car's vehicle registration certificate, or use an official guide, available from the Vehicle Certification Agency (www.vca.gov.uk).

Company Car Tax Bands
% of P11D price CO2 (g/km) to be taxed* CO2 (g/km)
2013/14*
CO2 (g/km)
2014/15*
CO2 (g/km)
2015/16*
CO2 (g/km)
2016/17**
5 (8) 1-75 1-75 0-50 -
7 (7) - - - 0-50
9 (12) - - 51-75 -
10 (13) 76-94 - - -
11 (14) 95-99 76-94 - 51-75
12 (15) 100-104 95-99 - -
13 (16) 105-109 100-104 76-94 -
14 (17) 110-114 105-109 95-99 -
15 (18) 115-119 110-114 100-104 76-94
16 (19) 120-124 115-119 105-109 95-99
17 (20) 125-129 120-124 110-114 100-104
18 (21) 130-134 125-129 115-119 105-109
19(22) 135-139 130-134 120-124 110-114
20 (23) 140-144 135-139 125-129 115-119
21 (24) 145-149 140-144 130-134 120-124
22 (25) 150-154 145-149 135-139 125-129
23 (26) 155-159 150-154 140-144 130-134
24 (27) 160-164 155-159 145-149 135-139
25 (28) 165-169 160-164 150-154 140-144
26 (29) 170-174 165-169 155-159 145-149
27 (30) 175-179 170-174 160-164 150-154
28 (31) 180-184 175-179 165-169 155-159
29 (32) 185-189 180-184 170-174 160-164
30 (33) 190-194 185-189 175-179 165-169
31 (34) 195-199 190-194 180-184 170-174
32 (35) 200-204 195-199 185-189 175-179
33 (36) 205-209 200-204 190-194 180-184
34 (37) 210-214 205-209 195-199 185-189
35 (37) 215+ 210+ 200-204 190-194
36 (37) - - 205-209 195-199
37 (37) - - 210+ 200+
* Percentage charge for diestel in brakets. ** Diesel 3% charge abolished

Once you have worked out your P11D value, discovered what percentage of it you’ll pay tax on, and calculated the figure that amounts to, bear in mind that you pay tax on it at your higher rate (either 20% or 40%). This is normally deducted every month from your salary.

Diesel cars and your tax bill
Diesel engines produce less CO2, so your actual company car tax bill should be smaller than the equivialnt size petrol engine. But other factors may offset this and make diesels just as expensive overall.

For a start, diesel models usually cost more than the petrol equivalent, so you have to make sure the higher P11D price doesn't outweigh any advantage from a lower tax banding.

Diesel fuel costs more at the pumps than petrol too, so you need to meet the predicted fuel economy figures from the manufacturer to really benefit.

And finally, diesel company cars have a 3% surcharge added to their tax band, bcause of concerns about particulates and other pollutants that come out from diesel exhausts.

Alternative fuels and your tax bill
There is a 3% discount for hybrids (petrol/electric cars), a 2% discount for LPG and a 6% discount for electric-only cars.

The 'free' fuel benefit
You may face a further tax if your employer provides 'free' fuel for private motoring. This could be because you use a company fuel card, for example, and don’t repay the private usage element, or because your employer pays for travel between home and work.

The taxable benefit is now based simply on the Government derived figure of £14,400, multiplied by the same percentage derived from the CO2 table.

To find out what your company car tax bill will be, go to the company car tax calculator.