Company Car Tax Calculation
BMW 3 Series Saloon 330e M Sport Sport-Auto
A company car driver can expect to pay vehicle benefit tax If the company pays for the use of fuel on private journeys, tax on fuel benefit will also be applied. Use our fuel benefit check tool to give you an indication of what this would look like.
For a monthly paid car driver on the PAYE system with the correct tax code, one twelfth of the appropriate amount of tax will be deducted from income via the monthly payroll. The car benefit is added to your income for tax purposes. For an individual already close to the threshold for higher rate tax, some will be taxed at 20 percent, and some at 40 percent. The P11D value is fixed for the life of the car according to the new list price when first registered, but other rates may change.
Vehicle benefit tax
| Tax year to 5th April | 2023/24 | 2024/25 | 2025/26 |
|---|---|---|---|
| P11D value | £47,480 | £47,480 | £47,480 |
| Percentage charge | 12% | 12% | 13% |
| Benefit in kind | £5,698 | £5,698 | £6,172 |
| Tax payable at basic rate | £1,140@20% | £1,140@20% | £1,234@20% |
| Tax payable at 40% | £2,279 | £2,279 | £2,469 |
Fuel benefit tax
| Tax year to 5th April | 2023/24 | 2024/25 |
|---|---|---|
| P11D value | £27,800 | £27,800 |
| Percentage charge | 12% | 12% |
| Benefit in kind | £3,336 | £3,336 |
| Tax payable at basic rate | £667@20% | £667@20% |
| Tax payable at 40% | £1,334 | £1,334 |
View effect on net pay
What will my income tax be with a company car? How will a company car affect my net pay?
Where tax rates are unknown for future years we have used the latest confirmed rates, rather than attempt a guess at future changes. For instance the company car tax percentages might be known for 1 or 2 years time but PAYE and N.I. thresholds are only known for this year.
Tax Components
| On the road price including options | £47,535 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| First-year VED | £ 0 | |||||||||||
| Manufacturers price date | 01-Nov-2023 | |||||||||||
| Value for P11D excluding options | £47,480 | |||||||||||
| Taxable accessories | £ 0 | |||||||||||
| Non-taxable items | £ 55 | |||||||||||
VED, FRF, non-taxable options such as telephone,
telephone wiring or servicing packages.
Discounts and grants will be shown as a negative item.
| ||||||||||||
| Capital contributions | £ 0 | |||||||||||
| Amount paid annually for private use of the car | £ 0 | |||||||||||
| Fuel type key letter | A | |||||||||||
The fuel type key letter is required for the P46(car)
form used to inform the tax authorities of the exact
level of benefit arising from a company car.
| ||||||||||||
| Euro standard | 6d | |||||||||||
Euro 6d-TEMP is a minimum requirement for new cars from September 2019. Diesels that meet the higher standard of 6d also conform to the RDE2 NOx emission limits and avoid the 4% diesel company car tax supplement. | ||||||||||||
| Electric battery range | 38miles | |||||||||||
AER (All Electric Range) or ZER (Zero Emission Range). The official figure can be found on the Certificate of Conformity issued with the vehicle. If it includes a fraction of a mile, round up to whole miles for the P11D. | ||||||||||||
The base data has been taken from the manufacturer and applied to the latest tax information. Errors or changes could arise. Send a Calculation Enquiry if there is something you don't understand or think might be incorrect. Please see the full Terms and Conditions.