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Car
Tax Guide
Road Tax
For new cars registered after 1 March 2001, road tax (or Vehicle
Excise Duty as it is more formally known), is based upon the car CO2
emission level. The current rates applicable to cars from 23
March 2006 are shown below.
|
CO2
emissions g/km |
Diesel |
Petrol |
Alternative fuel |
|
|
12mth |
6mth |
12mth |
6mth |
12mth |
6mth |
|
Up
to 100 |
£0.00 |
- |
£0.00 |
- |
£0.00 |
- |
|
101
to 120 |
£50.00 |
- |
£40.00 |
- |
£30.00 |
- |
|
121
to 150 |
£110.00 |
£60.50 |
£100.00 |
£55.00 |
£90.00 |
£49.50 |
|
151
to 165 |
£135.00 |
£74.25 |
£125.00 |
£68.75 |
£115.00 |
£63.25 |
|
166
to 185 |
£160.00 |
£88.00 |
£150.00 |
£82.50 |
£140.00 |
£77.00 |
|
Over
185 |
£195.00 |
£107.25 |
£190.00 |
£104.50 |
£180.00 |
£99.00 |
|
Over
225* |
£215.00 |
£118.25 |
£210.00 |
£115.50 |
£200.00 |
£110.00 |
VIEW THE
UK's BEST CAR LEASING DEALS HERE
Company Car Tax
Where a director or an employee earning £8,500 a year or more is
provided with a car by their employer and that car is available
for private use , or to a member of their family or household, a
taxable benefit arises. A further tax charge arises if free or
subsidised fuel is provided for private use in a company car.
HOW TO
CALCULATE COMPANY CAR TAX - BASIC CALCULATION
The basic calculation of the annual tax payable is shown below:
Taxable list price of vehicle x CO2
emissions percentage x employee tax rate
Example for 2006/07
Ford Mondeo 2.0 TDCi Zetec, CO2
emissions 161 g/km, list price £17,800, 40% taxpayer
£17,800 x 23% (per table below)
x 40% = £1637.60 annual tax
payable
Fuel Benefit Tax
Where an employee receives a company car and also receives free
or subsidised fuel for private use, a further taxable benefit
arises.
HOW TO
CALCULATE THE TAX ON PRIVATE FUEL BENEFIT
Private fuel benefit is calculated in a similar manner to
company car tax. A scale charge set by the Government (currently
£14,400) is multiplied by the same percentage for CO2
emissions
as used to calculated the company car taxable benefit. The tax
payable is therefore:
£14,000 x CO2
emissions percentage x employee tax rate
Example for 2006/07
Ford Mondeo 2.0 TDCi Zetec, CO2
emissions 161 g/km, 40% taxpayer
£14,400 x 23% (per CO2 table)
x 40% = £1324.80 annual tax
payable
For more information on
company car taxes visit
www.companycartaxguide.co.uk
Disclaimer:
Top ten do not hold any responsibility for the
accuracy of the information on this website nor
the information contained on the sites linked
above. Top ten are in no way associated with the
suppliers listed above.
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