2012/13 company car tax bands explained

* 2012/13 company car tax bands explained * New bands start at 10% * Zero CO2 emissions exemption remains...

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Tom Webster
2 Feb 2012 11:25 | Last updated: 14 Jun 2018 00:03

The company car tax system changed on April 1, 2012, with four new bands to reflect the lower average CO2 emissions of many new cars.

Cars that are zero-rated for CO2 retained their exemption from company car tax, while those that emit 1-75g/km continue to be taxed at 5%.

However, the previous 76g-120g/km bracket has been split into five sections.

The new company car tax bands are split as follows:
• 76-99g/km = 10%
• 100-104g/km = 11%
• 105-109g/km = 12%
• 110-114g/km = 13%
• 115-119g/km = 14%

The 3% surcharge for diesel cars remains, although no car will be liable for more than 35% tax.

This 35% top-level tax will apply to petrol cars that emit more than 220g/km, down from the previous figure of 225g/km.

The changes are designed to reflect the fact that average CO2 emissions for new cars sold in the UK fell from 165g/km in 2007 to 138g/km in 2011.

What Car? company car guide 2012 >>

Company car tax how it's worked out
Company car tax is calculated using the price of the car, the CO2 emissions and the employees income-tax band.

A driver that pays 20% income tax and runs a VW Golf Bluemotion 1.6 TDI emitting 99g/km and costing 20,000 would calculate tax liability as follows:

99g/km = 10% company car tax
10% of 20,000 = 2000
20% of 2000 = 400
Total to pay: annual company car tax bill = 400, or 33.34 per month.

2012-2013 tax bands
Figures for diesel cars with 3% surcharge in brackets.

Zero emission vehicles 0%
1-75g/km 5%
76-99g/km 10% (13%)
100-104g/km 11% (14%)
105-109g/km 12% (15%)
110-114g/km 13% (16%)
115-119g/km 14% (17%)
120-124g/km 15% (18%)
125-129g/km 16% (19%)
130-134g/km 17% (20%)
135-139g/km 18% (21%)
140-144g/km 19% (22%)
145-149g/km 20% (23%)
150-154g/km 21% (24%)
155-159g/km 22% (25%)
160-164g/km 23% (26%)
165-169g/km 24% (27%)
170-174g/km 25% (28%)
175-179g/km 26% (29%)
180-184g/km 27% (30%)
185-189g/km 28% (31%)
190-194g/km 29% (32%)
195-199g/km 30% (33%)
200-204g/km 31% (34%)
205-209g/km 32% (35%)
210-214g/km 33% (35%)
215-219g/km 34% (35%)
220g/km or more 35% (35%)

Best company cars 2012 >>

Tom Webster