The car’s list price for tax purposes (known as P11D) which includes any optional extras fitted to the car.
The car’s percentage banding determined by its CO2 emissions and, in some cases, its type of fuel.
Your income tax band.
Write down two sets of figures, the CO2 emission figure of the car and tax list price of the car.
In this example let us say 163 and £20,000 respectively.
Take the CO2 emission figure of the car and apply it to the first table below, rounding down to nearest 5g/km to give taxable % of list price.
Remember diesel engines have additional supplements making them less tax efficient than petrol engines.
In this example with a CO2 emission figure of 163, the taxable % of list price is 19% if we assume a petrol engined car (if the engine was a diesel it would incur a additional supplement of 3% raising the taxable % of list price to 22%).
Now do the following sums:
19% of £20,000 tax list price = taxable benefit (the answer in this case £3,800).
If you are a 22% Taxpayer then (22 x 3800)/100 = Tax payable per annum, (answer £836).
836 / 12 = £69.67 tax payable per month
If you are a 40% Taxpayer then (40 x 3800) / 100 = Tax payable per annum (answer £1,520)
1520 / 12 = £126.67 tax payable per month
Tables are also included for cars using alternative fuels and cars without an approved CO2 figure.
Note: The exact CO2 figure is always rounded down to the nearest 5 grams per kilometre (g/km). For example, CO2 emissions of 188g/km are treated as 185g/km.
Diesel (Euro IV) first registered on or before 31 December 2005
L
cancel type D supplement, above
none
Diesel (Euro IV) first registered on or after 1 January 2006
L
supplement: 3% (as type D; see note 1)
none
Electric only
E
reduction: 6%
none
Hybrid electric
H
reduction: 3%
none
Gas only
B
reduction: 2%
none
Bi-fuel with CO2 emissions figure for gas (note 2)
B
reduction: 2%
use lowest CO2 figure
Bi-fuel conversion, or other bi-fuel not within type B
C
none
none
Car manufactured to be capable of running on E85 fuel
G
reduction: 2% (from 2008/09 only)
none
Notes:
Subject to the overall maximum appropriate percentage of 35%.
Bi-fuel car meeting the conditions to be a type B car.
Supplements and reductions only apply to cars first registered on or after 1 January 1998. They apply to all such cars, whether or not they have an approved CO2 emissions figure.
All of the documents can be obtained from us in a word format, so that they can be personalised and edited to suit your company or business. This service is free of charge, on request or phone 01908 262662.
Webcars is a trading style of LVC Central Ltd. | Tel: 01908 262662
