Vehicle Benefits

Car Benefits 2020/ 21

In April 2020, the UK Government will switch its CO2 figures used to calculate tax rates from the existing NEDC data set to WLTP. As such, there will be a changeover period where two different sets of BIK rates will be used - one for vehicles registered before 6th April 2020, and one for those registered after that date.

The tablse below shows the proposed new bands and rates for tax year 2020 to 2021

Cars registered before 6 April 2020

CO2 emissions	Appropriate percentage
(g/km)	Electric Range (miles)	2020/21%
0		0
1-50	over 130	2
1-50	70-129	5
1-50	40-69	8
1-50	30-39	12
1-50	under 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

Cars registered from 6 April 2020

CO2 emissions	Appropriate percentage
(g/km)	Electric Range (miles)	2020/21 %
0		0
1-50	over 130	0
1-50	70-129	3
1-50	40-69	6
1-50	30-39	10
1-50	under 30	12
51-54		13
55-59		14
60-64		15
65-69		16
70-74		17
75-79		18
80-84		19
85-89		20
90-94		21
95-99		22
100-104		23
105-109		24
110-114		25
115-119		26
120-124		27
125-129		28
130-134		29
135-139		30
140-144		31
145-149		32
150-154		33
155-159		34
160-164		35
165-169		36
170+		37

If no emissions rating available
Reliable emissions data is not widely available - particularly for cars registered before 1 January 1998. For these the following taxable percentages apply, regardless of fuel type:

Engine size:	Registered before 01/01/1998	Registered after 01/01/1998
1,400 cc or less	15%	15%
1,401-2,000 cc	22%	25%
over 2,000 cc	32%	35%

Car Fuel Benefits

Provision of fuel for company cars

.	2019 / 20	2020 / 21
Fuel benefit charge multiplier	£24,100	£24,500

Percentage used to calculate the taxable benefit of the car for which the fuel is provided.
The charge does not apply for certain environmentally friendly cars.
The charge is proportionately reduced if provision for private fuel ceases part of way through the year. The fuel benefit is reduced to nil only if the employee pays for all private fuel.


VAT on fuel benefits

Fot the Government Road fuel scale charge tables please follow the link below:

Road fuel scale charge tables for VAT

Where businesses wish to reclaim the input VAT on fuel which has some degree of private use, they must account for output VAT for which they may use the flat rate valuation charge.

Please check with us for any updated rates.



Advisory mileage rates for business mileage in company cars
(From 1 March 2020)

Petrol hybrid cars are treated as petrol cars for this purpose

The Advisory Electricity Rate for fully electric cars is 4 pence per mile.

Electricity is not a fuel for car fuel benefit purposes.

Approved mileage rates for business mileage in own car
(2011/12 onwards)

If the van is driven for significant private use and the employer pays for the fuel used on private journeys, this charge will apply.

A proportionate reduction is made where private fuel ceases to be provided part-way through a year, or where the benefit of the van is shared.

Car Costs - Vehicle Excise Duty (VED) Rates

VED ('Car Tax') rates also reflect emissions with lower scale rates for cars using alternative fuels.

First year - rates below apply from 1 April 2020.