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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 an employer-provided car for your 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 CO2 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 list 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
CO2 emissions (g/km) BIK tax % 2016/17*
BIK tax % 2017/18*
BIK tax % 2018/19*
BIK tax % 2019/20*
0-50 7 (10) 9 (12) 13 (16) 16 (19)
51-75 11 (14) 13 (16) 16 (19) 19 (22)
76-94 15 (18) 17 (20) 19 (22) 22 (25)
95-99 16 (19) 18 (21) 20 (23) 23 (26)
100-104 17 (20) 19 (22) 21 (24) 24 (27)
105-109 18 (21) 20 (23) 22 (25) 25 (28)
110-114 19 (22) 21 (24) 23 (26) 26 (29)
115-119 20 (23) 22 (25) 24 (27) 27 (30)
120-124 21 (24) 23 (26) 25 (28) 28 (31)
125-129 22 (25) 24 (27) 26 (29) 29 (32)
130-134 23 (26) 25 (28) 27 (30) 30 (33)
135-139 24 (27) 26 (29) 28 (31) 31 (34)
140-144 25 (28) 27 (30) 29 (32) 32 (35)
145-149 26 (29) 28 (31) 30 (33) 33 (36)
150-154 27 (30) 29 (32) 31 (34) 34 (37)
155-159 28 (31) 30 (33) 32 (35) 35 (37)
160-164 29 (32) 31 (34) 33 (36) 36 (37)
165-169 30 (33) 32 (35) 34 (37) 37 (37)
170-174 31 (34) 33 (36) 35 (37) 37 (37)
175-179 32 (35) 34 (37) 36 (37) 37 (37)
180-184 33 (36) 35 (37) 37 (37) 37 (37)
185-189 34 (37) 36 (37) 37 (37) 37 (37)
190-194 35 (37) 37 (37) 37 (37) 37 (37)
195-199 36 (37) 37 (37) 37 (37) 37 (37)
200+ 37 (37) 37 (37) 37 (37) 37 (37)

 * Percentage charge for diesel in brackets. Diesel hybrids are exempt from the 3% diesel charge

Once you know your car’s CO2 emissions and have worked out its P11D value, multiply it by the appropriate tax percentage from the above table. You will pay tax on the result at your marginal rate (20% or 40% in 2016/17). This is normally deducted every month from your salary.

Diesel cars and your tax bill
Diesel engines produce less CO2 than petrol engines, so your actual company car tax bill should be smaller than it would be from an equivalent petrol model. But other factors may offset this and make diesels just as expensive overall.

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

Diesel fuel, in general, can cost 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 are subject to a 3% charge added to their tax band because of concerns about particulates and other ‘local’ pollutants emitted from the exhaust.

The 'free' fuel benefit
You may face 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 tax payable on the ‘free’ fuel benefit is based on the Government fuel scale charge of £22,200 in 2016/17, multiplied by the appropriate percentage for your car derived from the CO2 table above. The result is then multiplied by your marginal tax rate to derive the annual tax due.

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