Charge based on a percentage of the initial list price of the car, including acceddories, delivery charges and VAT. The percentage depends on the carbon dioxide emmissions rating of the car, and whether the engine runs on petrol or diesel. For 2010/11, the taxable benefit on an electric car (no emmissions) is nil.

Ratings Petrol Diesel
1-75g/km 5% 8%
76-120 g/km 10% 13%
121-125 g/km 15% 18%
over 125 g/km +1% for each extra 5g/km (130,135 etc.)
Maximum 35% 35%

Special rules apply to older cars which do not have a CO2 rating. Employee contributions for private use are deduced from the taxable figure. Company vans are charged at £3,000 if private use is more than home-to-work travel. An additional amount of £500 is charged if fuel is provided free for private use. There is no taxable benefit on an electric van.

Car fuel benefit

The benefit of free fuel for private use in a company car is calculated using the same percentage as that used for the car benefit, applied to a standard figure of £18,000 (2009/10: £16,900). The taxable amount is therefore between £900 (min.) and £6,300 (max.).