posted 11 months ago

Company Car Tax 2015/16 To 2019/20: Plan Now For Low Payments

UK company car tax rates for 2015/16 to 2019/20 confirmed. Plan now to keep benefit-in-kind payments low for the long term.

Company Car Tax Rates Set To Rise

The UK Government has confirmed company car tax, benefit-in-kind, rates up to 2019/20 to enable motorists to pick vehicles with affordable liabilities now, and in the future. That is important as executives tend to commit to multi year contracts. A key consideration is that some cars with fairly low liabilities in 2016/17 become far more expensive for 2019/20. Let us consider why.

Company car tax is based on a vehicle's P11D value that incorporates its list price, delivery, extras and registration plates. Let us say £20,000. Tax is then paid on a percentage of this sum, but which percentage is defined by the model's emissions.

Imagine it is a petrol vehicle that produces carbon at a rate of 105g/km. The 2016/17 figure is 18% which – based on the £20,000 P11D is £3,600. Tax is charged on the lower sum at the motorist's income tax rate of 20%, 40% or 45%. Let us assume it is the cheapest. 20% of the £3,600 is £720. However, the 18% rises to 25% for 2019/20 which equates to £1,000. Such rises are part of a wider plan to encourage drivers to pick increasingly eco-friendly models.

Useful Links

Understanding Company Car Tax

Calculate company car tax

Ten of the most popular company cars

Company Car Tax Rates: 2015/16, 2016/17, 2017/18, 2018/19 & 2019/20


% of P11D

2015/16

2016/17

2017/18

2018/19

2019/20

CO2 (g/km)

CO2 (g/km)

CO2 (g/km)

CO2 (g/km)

CO2 (g/km)

0

N/A

N/A

N/A

N/A

N/A

5

0-50

N/A

N/A

N/A

N/A

7

N/A

0-50

N/A

N/A

N/A

9

51-75

N/A

0-50

N/A

N/A

10

N/A

N/A

N/A

N/A

N/A

11

N/A

51-75

N/A

N/A

N/A

12

N/A

N/A

N/A

N/A

N/A

13

76-94

N/A

51-75

0-50

N/A

14

95-99

N/A

N/A

N/A

N/A

15

100-104

76-94

N/A

N/A

N/A

16

105-109

95-99

N/A

51-75

0-50

17

110-114

100-104

76-94

N/A

N/A

18

115-119

105-109

95-99

N/A

N/A

19

120-124

110-114

100-104

76-94

51-75

20

125-129

115-119

105-109

95-99

N/A

21

130-134

120-124

110-114

100-104

N/A

22

135-139

125-129

115-119

105-109

76-94

23

140-144

130-134

120-124

110-114

95-99

24

145-149

135-139

125-129

115-119

100-104

25

150-154

140-144

130-134

120-124

105-109

26

155-159

145-149

135-139

125-129

110-114

27

160-164

150-154

140-144

130-134

115-119

28

165-169

155-159

145-149

135-139

120-124

29

170-174

160-164

150-154

140-144

125-129

30

175-179

165-169

155-159

145-149

130-134

31

180-184

170-174

160-164

150-154

135-139

32

185-189

175-179

165-169

155-159

140-144

33

190-194

180-184

170-174

160-164

145-149

34

195-199

185-189

175-179

165-169

150-154

35

200-204

190-194

180-184

170-174

155-159

36

205-209

195-199

185-189

175-179

160-164

37

210+

200+

190+

180+

165+


* Add 3% for diesels up to maximum 37% (2015/16).
* Scrapping of diesel supplement postponed to April 2021.