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P11D Taxable Benefit for Cars and Vans

The subject of taxable benefit in relation to Company vehicles is very complex. If your employment allows use the private use of a car, then it is likely that you will be subject to company car tax. It makes no difference if the car is owned or hired, old or new, or hardly used for private purposes.

We have tried to make the subject as easy and as simple as possible to understand. This should help you understand the basics however you must seek professional advice from a qualified accountant to ensure your own circumstances are taken into account.

HM Customs and Revenue @ www.hmrc.gov.uk have all the latest information. To get your CO2 figure you can either get a figure off this site (data supplied by CAP) or use the Vehicle Certification Agency @ www.vcacarfueldata.org.uk .

Alternatively you can perform company car tax calculations at ComCar where all the necessary information on prices, options and CO2 is included to allow quick tax comparisons on any car or van. ComCar has helped us update this editorial section and it's a quick and easy to work out what your taxable benefit might be by using their Car Tax Calculator.

Vans up to 3.5 Tonnes

Taxable benefit for the car and fuel

  • If you are a sole trader or a partner and acquire a car through your business, or privately, you make a claim against your self assessment tax bill to claim the costs of your business mileage.
  • If you are a company director, or your pay - including the value of your benefits – is more than £8500 per year, then you’ll always have to pay tax on any extra benefits you get.
  • The company car is the largest and commonest benefit for most companies and HMRC have set rules to calculate its salary equivalent.
  • Any contributions you make, as the driver, towards the cost of your vehicle need to be taken into account i.e. the value of the taxable benefit may be less.
  • You also need to take into account how long you have had the car for in the relevant financial year.
  • Work out your car P11D taxable list price, which is the list price of the car including accessories, plus delivery charges and taxes due.
  • Then find out the car CO2 output figure for your vehicle. -The type of fuel the car uses also matters since diesel attracts a 3% penalty. In the past this was because diesel had higher levels of non-CO2 pollutants (or particulates).
  • Multiply the P11D taxable list price by the percentage based on your car CO2 output (and fuel type) to calculate the taxable benefit.
  • Multiply this by your rate of income tax to see what you will have to pay.
  • Employees will also be taxed if their employer provides fuel for private use.
  • This could be as a result of using a company fuel card and not repaying the private usage element.
  • The fuel benefit for 2011-2012 is simply calculated by multiplying a fixed sum of £18,800 by the taxable percentage based on the car CO2 output.
 Taxable benefit for the van and fuel

  • The same principles apply to van drivers
  • For 2011/12 a flat reportable P11D value of £3000 applies to all company vans for private use.
  • Vans with a second row of seats such as double-cab pickups can still qualify as vans provided they have a one tonne payload, even when a hardtop is fitted. 
  • The £3000 can be reduced if the following applies.                                                                    
  1. The van is unavailable for part of the year (as with cars however the van must have been unavailable for a minimum of 30 consecutive days to qualify for a reduction).
  2. You make a contribution towards the private use of the van.
  3. The van is shared – in this case the £3000 is divided on an appropriate basis between each of the drivers.
  • 2011/12 Van fuel benefit applies if the £3000 charge above is applied and fuel available for free private use
  • The 2011/12 Van fuel benefit is a flat rate of £550.
  • The taxman does not count driving the van between home and work as private mileage.
  • So if you take the van home at night and do no other mileage, you do not have to pay company van tax.

Petrol Cars

CO2 g/km band 2011/12 2012/13 2013/14
up to 75 5% 5% 5%
76 - 94 10% 10% 10%
95 - 99 10% 10% 11%
100 - 104 10% 11% 12%
105 - 109 10% 12% 13%
110 - 114 10% 13% 14%
115 - 119 10% 14% 15%
120 - 120 10% 15% 16%
121 -124 15% 15% 16%
125 - 129 15% 16% 17%
130 - 134 16% 17% 18%
135 - 139 17% 18% 19%
140 - 144 18% 19% 20%
145 - 149 19% 20% 21%
150 - 154 20% 21% 22%
155 - 159 21% 22% 23%
160 - 164 22% 23% 24%
165 - 169 23% 24% 25%
170 - 174 24% 25% 26%
175 - 179 25% 26% 27%
180 - 184 26% 27% 28%
185 - 189 27% 28% 29%
190 - 194 28% 29% 30%
195 - 199 29% 30% 31%
200 - 204 30% 31% 32%
205 - 209 31% 32% 33%
210 - 214 32% 33% 34%
215 - 219 33% 34% 35%
220 - 224 34% 35% 35%
225 - 229 35% 35% 35%
230 and above 35% 35% 35%

Diesel Cars

CO2 g/km band 2011/12 2012/13 2013/14
up to 75 8% 8% 8%
76 - 94 13% 13% 13%
95 -99 13% 13% 14%
100 - 104 13% 14% 15%
105 - 109 13% 15% 16%
110 - 114 13% 16% 17%
115 - 119 13% 17% 18%
120 - 120 13% 18% 19%
121 -124 18% 18% 19%
125 - 129 18% 19% 20%
130 - 134 19% 20% 21%
135 - 139 20% 21% 22%
140 - 144 21% 22% 23%
145 - 149 22% 23% 24%
150 - 154 23% 24% 25%
155 - 159 24% 25% 26%
160 - 164 25% 26% 27%
165 - 169 26% 27% 28%
170 - 174 27% 28% 29%
175 - 179 28% 29% 30%
180 - 184 29% 30% 31%
185 - 189 30% 31% 32%
190 - 194 31% 32% 33%
195 - 199 32% 33% 34%
200 - 204 33% 34% 35%
205 - 209 34% 35% 35%
210 - 214 35% 35% 35%
215 and above 35% 35% 35%

  • Cars with "zero emissions" are reduced to 0% for five years from 6th April 2010. 
  • If you are interested in finding out more information about the taxable benefit implications of a company vehicle then ask one of the contract hire partners.
  • Your contract hire company will also be able to provide you with the P11D taxable list price of your chosen vehicle.
  • This will comprise of the full list price including options, but exclude VED (Vehicle Excise Duty) and the first £55 First registration fee.
  • Some options can be excluded from calculation of the P11D value.These include the following items.
  1. Mobile phone preparation kits since an employer is allowed to provide a mobile phone tax free.
  2. Running cost items such as additional warranty, insurance or service packages.
  3. Any item which is necessary for work and will only be used for work such as a towbar.
  4. Items which are not attached to the car, such as rubber mats.
  5. Modifications or additional options to help a disabled employee. This category can also include the full additional cost of automatic transmission.


Compare Contract Hire Ltd cannot be held responsible in any way concerning the accuracy of the above information. Please seek professional advice from your accountant.

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P11D Benefit for Cars and Vans Explained

Comparecontracthire.com has provided a simple guide to help a business or a private individual understand how their P11D taxable benefit is calculated for a car or a van driver. This data has been produced in conjunction with ComCar.co.uk

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