The threshold CO2 emissions rate has been frozen at 140g/km until 5th April 2008. The threshold for 2008/9 will be 135g/km.
For most cars the rate of taxable benefit ranges from 15% to 35% of list price (plus certain accessories) for most petrol or diesel powered cars. Typical tax liabilities for an employee driving a £20,000 car in 2007/8:
Typical Company
Car Benefits 2007-8
Emissions
Taxable
Benefit
Tax
Tax
CO2 g/km
Fuel
%
£
@22%
@40%
158
Petrol
18
3,600
792
1,440
188
Diesel
27
5,400
1,188
2,160
188
Petrol
24
4,800
1,056
1,920
238
Petrol
34
6,800
1,496
2,720
The above Taxable percentage is calculated
against:
the list price of the car and accessories,
on
the day before it was first registered (up to a max.
value of £80,000)
your highest rate of income tax
Car Fuel Benefit - Fuel provided for private use
The tax charge for 2007/8 is calculated by establishing the emissions based percentage and multiplying the result by £14,400.
If the drivers of the first two cars in the example above also received fuel for private use, their taxable benefit will be:
Emissions
Taxable
Benefit
CO2 g/km
Fuel
%
£
158
Petrol
18
2,592
188
Diesel
27
3,888
Mileage
Rates 2007-8
Mileage for business travel paid
at the rates below will not attract any tax or NIC charges:
Vehicle
First 10k miles
Thereafter
Car
40p
25p
Motorcycle
24p
24p
Bicycle
20p
20p
Car
Fuel Only Advisory Rates 2007-8
Mileage (fuel only) for business travel
can be reimbursed at the maximum rates below:
Engine Capacity
Petrol
Diesel
LPG
up to 1400cc
9p
9p
6p
1401-2000cc
11p
9p
7p
Over 2000cc
16p
12p
10p
Please
Note: The
figures in this tax guide are for guidance only. Professional
advice should be obtained before acting on the information
and no responsibility can be accepted for any loss however
caused resulting from actions taken or not-taken
as a result of the information on this page.
