Company car tax bands explained

23 March 2011

  • How much tax do you have to pay?
  • How do you pay nothing at all?
  • Updated for Budget 2011

How much will your company car cost you in tax?

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A company car can be a great perk, but it doesn't come for free – the taxman takes a bite of your earnings for the privilege.

How big a bite depends on three things: the P11D cost of the car (this is its list price plus options, but minus on-the-road charges and any capital contributions you make towards the car), the amount of CO2 that it emits, and your personal income tax band.

Once you've got these pieces of information you can use the table below to see how much the car will cost you each month. You can see from the table how costs increase each year as the CO2 levels ratchet back.

Multiply the P11D value of the car by the benefit-in-kind percentage that it's subject to based on its CO2 output. This is the proportion of the car's value that you'll be taxed on based on your personal income tax band, so multiply that by 20%, 40% or 50% as appropriate.

If you don't want to pay anything at all, you'll need to get a fully electric battery-powered car. These are totally exempt from the charges until 2015. Cars emitting less than 75g/km will be subject to tax based on 5% of their value until 2015.



CO2 g/km
95
100
105
110
115
120
125
130
135
140
145
150
155
160
165
170
175
180
185
190
195
200
205
210
215
220
225
230
235
2011/2012

Petrol %
0.10
0.10
0.10
0.10
0.10
0.10
0.15
0.15
0.16
0.17
0.18
0.19
0.20
0.21
0.22
0.23
0.24
0.25
0.26
0.27
0.28
0.29
0.30
0.31
0.32
0.33
0.34
0.35
0.35
Diesel %
0.13
0.13
0.13
0.13
0.13
0.13
0.18
0.18
0.19
0.20
0.21
0.22
0.23
0.24
0.25
0.26
0.27
0.28
0.29
0.30
0.31
0.32
0.33
0.34
0.35
0.35
0.35
0.35
0.35
2012/2013

Petrol %
0.10
0.10
0.11
0.12
0.13
0.14
0.15
0.15
0.16
0.17
0.18
0.19
0.20
0.21
0.22
0.23
0.24
0.25
0.26
0.27
0.28
0.29
0.30
0.31
0.32
0.33
0.34
0.35
0.35
Diesel %
0.13
0.13
0.14
0.15
0.16
0.17
0.18
0.18
0.19
0.20
0.21
0.22
0.23
0.24
0.25
0.26
0.27
0.28
0.29
0.30
0.31
0.32
0.33
0.34
0.35
0.35
0.35
0.35
0.35
2013/2014

Petrol %
0.10
0.11
0.12
0.13
0.14
0.15
0.16
0.17
0.18
0.19
0.20
0.21
0.22
0.23
0.24
0.25
0.26
0.27
0.28
0.29
0.30
0.31
0.32
0.33
0.34
0.35
0.35
0.35
0.35
Diesel %
0.13
0.14
0.15
0.16
0.17
0.18
0.19
0.20
0.21
0.22
0.23
0.24
0.25
0.26
0.27
0.28
0.29
0.30
0.31
0.32
0.33
0.34
0.35
0.35
0.35
0.35
0.35
0.35
0.35


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