posted 2 years ago

Budget 2014: Company Car Tax Rates 2016 - 2019

How Company Car Tax Works

The Budget 2014 has confirmed the Company Car Tax rates for 2016 to 2019. These figures – some financial experts have claimed – are likely to increase government revenue from this source by £240 million in 2017/18 and by £480 million the following year. In simple terms, Company Car Tax is calculated via a “P11D Value”. This combines the car's list price with the cost of delivery, optional extras and registration plates. Let us say the total is £10,000 including VAT. The motorist pays tax on a percentage of this sum according to the car's emissions. The lower the emissions the lower the percentage. So, imagine that – in financial year 2016/2017 – a vehicle produces carbon at the rate of 99g/km. That ensures the taxable amount of the P11D Value is 16%, which equates to £1,600. This sum is added to the employee's salary - not literally but for calculation  reasons – then tax is paid at his/her Income Tax Rate (20%, 40% or 45% based on salary).

Company Car Tax Rates 2014/2015, 2015/2016, 2016/2017, 2017/2018, 2018/2019

% of  P11D

2014/2015

2015/2016

2016/2017

2017/2018

2018/2019

Price

CO2 (g/km)

CO2 (g/km)

CO2 (g/km)

0

0

N/A

N/A

N/A

N/A

5

1-75

0-50

N/A

N/A

N/A

7

N/A

N/A

0-50

N/A

N/A

9

N/A

51-75

N/A

0-50

N/A

10

N/A

N/A

N/A

N/A

N/A

11

76-94

N/A

51-75

N/A

N/A

12

95-99

N/A

N/A

N/A

N/A

13

100-104

76-94

N/A

51-75

0-50

14

105-109

95-99

N/A

N/A

N/A

15

110-114

100-104

76-94

N/A

N/A

16

115-119

105-109

95-99

N/A

51-75

17

120-124

110-114

100-104

76-94

N/A

18

125-129

115-119

105-109

95-99

N/A

19

130-134

120-124

110-114

100-104

76-94

20

135-139

125-129

115-119

105-109

95-99

21

140-144

130-134

120-124

110-114

100-104

22

145-149

135-139

125-129

115-119

105-109

23

150-154

140-144

130-134

120-124

110-114

24

155-159

145-149

135-139

125-129

115-119

25

160-164

150-154

140-144

130-134

120-124

26

165-169

155-159

145-149

135-139

125-129

27

170-174

160-164

150-154

140-144

130-134

28

175-179

165-169

155-159

145-149

135-139

29

180-184

170-174

160-164

150-154

140-144

30

185-189

175-179

165-169

155-159

145-149

31

190-194

180-184

170-174

160-164

150-154

32

195-199

185-189

175-179

165-169

155-159

33

200-204

190-194

180-184

170-174

160-164

34

205-209

195-199

185-189

175-179

165-169

35

210+

200-204

190-194

180-184

170-174

36

N/A

205-209

195-199

185-189

175-179

37

N/A

210+

200+

190+

180+

Note: 

  • 2014/2015, add 3% for diesel vehicles up to a maximum of 35%.
  • 2015/2016, add 3% for diesel vehicles up to a maximum of 37%.

2016/2017, petrol and diesels are treated equally for Company Car Tax purposes.

Budget 2014: Vehicle Excise Duty Rates

The Budget 2014 confirmed that Vehicle Excise Duty for cars will rise from April 1st 2014:

VED Band

Carbon Emissions (g/km)

2014/2015

 
   

First Year Rate

Standard Rate

A

Up to 100

0

0

B

101-110

0

20

C

111-120

0

30

D

121-130

0

110

E

131-140

130

130

F

141-150

145

145

G

151-165

180

180

H

166-175

290

205

I

176-185

345

225

J

186-200

485

265

K

201-225

635

285

L

226-255

860

485

M

Over 255

1,090

500

Note:

  • Band K includes cars that emit over 225g/km registered prior to March 23rd 2006.
  • The alternative fuel discount for 2014/15 will be £10.
  • Euro 4/5 vans will continue to cost £140 to tax. The rate for others will be £225.

Free Company Car Tax Calculator