Company car tax rates
How much you'll fork out depends on the value of the car, its carbon dioxide emissions and whether you are a lower or higher-rate tax payer.
You’ll be taxed on the car’s P11d value, which is the on-the-road price (including the cost of extras), less the cost of first registration and road tax.
You’ll then be taxed on a percentage of this figure – the more the car pollutes, the more you pay.
You then pay tax at your income tax rate. So, for example, if the car has a P11d value of £20,000, sits in the 25% tax band (see table), and you’re a higher rate tax payer, you'll pay: £20,000 x 0.25 x 0.40 = £2000.
You can find our online company car tax calculator here.
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