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
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:
| Road Tax Band A | Road Tax Band B | Road Tax Band C |
| FREE First Year Road Tax | Free First Year Road Tax | Free First Year Road Tax |
| FREE Standard Road Tax | £20 Standard Road Tax | £30 Standard Road Tax |
| Up to 100 g/km CO2 | 101 - 110 g/km CO2 | 111 - 120 g/km CO2 |
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| Audi A3 - Diesel 13% | BMW 3 Series - Diesel 13% | Ford C-Max - Diesel 13% |
| Volkswagen Golf - Diesel 13% | Ford Focus - Diesel 13% | Audi A4 - Diesel 13% |
| Lexus CT200h - Petrol Hybrid 10% | Vauxhall Astra - Diesel 13% | BMW 5 Series - 13% Diesel |
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| BMW 1 Series - Diesel 13% | Volkswagen Passat - Diesel 13% | Audi A1 - Petrol 10% |
| Ford Fiesta - Diesel 13% | Vauxhall Corsa - Diesel 13% | Ford Mondeo - Diesel 13% |
| Fiat 500 - Petrol 10% | Citroen C1 - Petrol 10% | MINI One - Petrol 10% |
>> Alfa Romeo
>> Daihatsu
>> Citroen
>> Chrysler
>> Chevrolet
>> Cadillac
>> Audi
>> Aston Martin
| 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+ |