* add 3% if car runs solely on diesel and is not euro IV compliant;
** add 2% if car runs solely on diesel; *** add 1% if car runs solely on diesel;
**** maximum charge so no diesel supplement.
n.b: The exact CO2 emissions figure should be rounded down to the nearest five grams per kilometre.
Car manufacturers have responded in two ways to these changes - more diesel engines and cleaner petrol engines. The changes have also resulted in more people opting out of company cars and looking for other ways of funding a car. Mileage allowances and increased salary are two ways, and the increase in personal leasing is plain to see.
Fuel Benefit in Kind charges
Benefit in Kind (BIK) taxation on free fuel has effects for both the company car driver and the employer and it is becoming less and less.attractive for company car drivers to receive 'free fuel' from their employers. A company car driver needs to compare the cost of paying for their own private fuel versus the tax they will pay under the fuel scale charge.
They should stop taking free fuel when the tax charge is higher than the actual cost of the fuel they receive. Company Car Tax Calculator helps make this calculation.
We have compiled a series of links to provide you with useful tax information.
Inland Revenue: Expenses and Tax Guide
Is a a guide to tax and national insurance contributions and treatment of company cars for employees and employers. It also outlines tax changes as of April 2002.
Benefits for Vehicles with a Co2 Emissions Figure
A useful resource on this aspect of taxation.
Co2 Emissions Finder
Allows you to enter vehicle makes and models to identify exact CO2 emissions rating of the vehicle.