Darnells - Chartered Accountants - Car and Fuel Benefits

Car and Fuel Benefits

Car and Fuel Benefits

Car and Fuel Benefits 2003/04 Onwards

To calculate the benefit charge on free fuel the percentage figure will be
multiplied against a set figure for the year 2003/04 the set figure
will be £14,400.
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For example
A Car that has CO2 emissions of 195g/km
Percentage used to calculate the company car tax charge for 2003/04 is 23%.
The fuel scale charge will be £14,400 x 23% =£3,312.

To calculate the car benefit charge you will need to know the price of the car for tax purposes and the approved CO2 emissions figure for the particular vehicle.

Example 1

Petrol car with an approved Co2 emissions figure. The price of the car for tax
purposes is £15,000. The approved CO2 emissions figure is 183g/km.
* Round 183 down to 180

*Look up percentage of the Car’s price to be taxed for 180g/km CO2 for the
relevant year in the ready reckoner below:

Percentage charge is 20%

*Basic car benefit charge is £15,000 x 20%= £ 3,000.

Example 2

Diesel car with an approved Co2 emissions figure.

The price of the car for tax purposes is £20,000. The approved Co2 emissions
figure is 172g/km.

Round 172 down to 170.

Look up Percentage of Car’s price to be taxed for the relevant year in the ready
reckoner below:

Percentage charge is 18%.

* Add 3% diesel supplement , so percentage charge becomes 21%.

* Basic car benefit charge is £20,000X 21% = £4,200.

Car fuel scale charge
		Up to 1400cc	1401-2000cc	Over 2000cc
		£	£	£
2002/03	-petrol	2,240	2,850	4,200
	-diesel	2,850	2,850	4,200

The fuel scale charge is reduced to nil only if the employee pays for all private fuel.

CO2 emissions in grams per kilometre				Percentage of car's price to be taxed
2002-03	2003-04	2004-05	2005-06 & 06-07 & 01-08

165	155	145	140	15*
170	160	150	145	16*
175	165	155	150	17*
180	170	160	155	18*
185	175	165	160	19*
190	180	170	165	20*
195	185	175	170	21*
200	190	180	175	22*
205	195	185	180	23v
210	200	190	185	24*
215	205	195	190	25*
220	210	200	195	26*
225	215	205	200	27*
230	220	210	205	28*
235	225	215	210	29*
240	230	220	215	30*
245	235	225	220	31*
250	240	230	225	32*
255	245	235	230	33**
260	250	240	235	34***
265	255	245	240	35****

Diesel Supplements
* Add 3 % if car runs solely on diesel.
** Add 2% if car runs solely on diesel.
*** Add 1% if car runs solely on diesel.
**** Maximum charge, so no diesel supplement.

The basic car benefit charge will be the car’s price multiplied by the percentage
charge of the CO2 emissions band in which the car falls, subject to

the addition of any diesel supplement, or
discount for cars using alternative fuels and technologies

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