Company Car Tax Explained

Company Car Tax Calculator

Look at our Band A, Band B and Band C listings for a full list of manufacturer models that come under the lowest company car tax banding.

 

To calculate the amount of tax you'll be liable for there are a number of considerations:

-    The rate of tax you currently pay (i.e. higher/lower rate)

-    The value of the car based on its P11d (OTR price less registration costs & road tax)

-    The car's CO2 emissions

-    Fuel type

 

The calculation is as follows: using the table below, you'll find a percentage figure. Multiply this by the P11d value and your tax rate and you'll find your tax cost. For instance (2011/12 tax year):

 

Petrol car with emissions of 123 CO2 g/km:          15%

Higher rate tax payer:                                         40%

P11d value                                                         £10,000

 

Tax Cost                                                            £600

 

Simple? Maybe not! The HMRC have a calculator on their website - click here to go straight to the right page

Company Car Tax Explained 2011

 

A company car is part of many employers' benefits package and will often be a more efficient way of owning and running your own vehicle, however the government won't let you get away without paying income tax for the privilege. Company cars are one of the most popular employee benefits, with more than one million UK directors and employees driving company cars.

 

Successive governments have increased taxation on cars and fuel. Companies are now encouraged to run 'greener' cars and a car's CO2 emission levels determine the tax paid for both new and existing vehicles. In the same way as it's becoming cheaper to run a greener car from a road tax perspective, the same can be said about company car tax. The general rule is the lower the Road Tax Band the lower the rate of tax.

 

Below are some examples of new cars that emit less than 120 g/km so are in the lowest band for company car tax i.e. 10% for petrol and 13% for diesel. Click on the cars for full model details. As you can see full size family cars are now available within this lowest bracket:

 

Home  | Road Tax Bands | Road Tax 2012 Prices | Used Car Road Tax  | Band A Cars Band B Cars | Band C Cars | Band D Cars | Cheapest Cars To Tax And Insure | Best MPG Cars
   Copyright 2012 Creative Managed Solutions Ltd

 

 

Bookmark This Page:

Internet Explorer Firefox Safari Chrome
Press Control and D TogetherPress Control and D TogetherPress Control and D Together

 

Petrol Diesel 2011/2012 g/km 2012/2013 g/km
10% 13% Up to 120 Up to 99
11% 14% N/A 100-104
12% 15% N/A 105-109
13% 16% N/A 110-114
14% 17% N/A 115-119
15% 18% 121-125 120-124
16% 19% 126-130 125-129
17% 20% 131-135 130-134
18% 21% 136-140 135-139
19% 22% 141-145 140-144
20% 23% 146-150 141-145
21% 24% 151-155 150-154
22% 25% 156-160 155-159
23% 26% 161-165 160-164
24% 27% 166-170 165-169
25% 28% 171-175 170-174
26% 29% 176-180 171-175
27% 30% 181-185 180-184
28% 31% 186-190 185-189
29% 32% 191-195 190-194
30% 33% 196-200 195-199
31% 34% 201-205 200-204
32% 35% 206-210 205-209
33% 35% 211-215 210-214
34% 35% 216-220 215-219
35% 35% 221-225+ 220+

 

Lowest Tax By Type

>> 4x4 Cars