Calculating Company Car Benefit

Company car benefit is designed to provide a way of taxing the value to you of having a car provided by your employer.

In effect you are being taxed on the benefit of your employer paying for the car's running costs rather than you doing so yourself.

Go to our company car benefit calculator.

What is the taxable value of a company car?

To get to the taxable value of your company car you need to multiply the car's List Price by a percentage figure based on the car's Carbon Dioxide ('CO2') emissions.

The higher the taxable list price of a company car, the higher the annual taxable beneft and vice versa.

Similarly, higher levels of CO2 output result in a higher company car taxable benefit.
 

What is 'List Price'?

For company car benefit purposes 'List Price' has a specific definition. It's the price of the car as published by the manufacturer, official importer or wholesale distributor of the car on the day before the car’s first registration.

The word 'distributor' doesn’t include a local retail dealership, which means that a dealer's after discount, on-the-road price is ignored.

What's in the 'List Price'?

Here’s what’s included in the definition of List Price:

•	the basic price of the car;
•	the price of any options or accessories fitted to the car prior to delivery, plus any accessories fitted to the car after delivery where the accessory costs more than £100;
•	delivery charges; number plates; and
•	VAT on all of the above.

Here’s what’s not included in the definition of List Price:

•	Vehicle Excise Duty (the "tax disc");
•	the initial first Registration Fee;
•	any delivery fuel provided with the vehicle;
•	the cost of equipment to enable a chronically sick or disabled person to drive the car;
•	the cost of adapting the car for a registered disabled driver or of options/accessories required by such a driver to be able to drive the car (e.g. an automatic gearbox);
•	the cost of “retro-fitting” the car to run on LPG/CNG (i.e. where the equipment is fitted after delivery) if the car does not have a recognised gas-based CO2 output.

P11D Value

The taxable List Price of a company car is often called the 'P11D' value - this is a reference to the number of the official form used to report taxable benefits such as company cars.

Special Rules

There are additional special rules for company cars which affect the List Price or annual taxable benefit.  Click on the this link for more details or keep reading and following the 'Next' buttons.

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Click the 'Next' button to see how engine CO2 output affects company car benefit.


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