Car benefit charge


Written by Ray Coman


Car Benefit Charge 2019-20


Co2 Emissions g/km Petrol Engine % Diesel Engines %
50 or less 16 20
51-75 19 23
76-94 22 26
95-99 23 27
100-104 24 28
105-109 25 29
110-114 26 30
115-119 27 31
120-124 28 32
125-129 29 33
130-134 30 34
135-139 31 35
140-144 32 36
145-149 33 37
150-154 34 37
155-159 35 37
160-164 36 37


170-174 37 37
175-179 37 37
180 and above 37 37


Van benefit charge



  2019-20 2018-19
Van benefit charge £3,430 £3,350



Fuel Benefit charge


  2019-20 2018-19
Car Fuel Benefit Charge Multiplier £24,100 £23,400
Van Fuel Benefit Charge Multiplier £655 £633



The benefit of a car provided for the private use of an employee is a percentage of the car's list price when new.

Car value


The actual price paid which may include discounts is not taken into account. The list price includes delivery charges, standard accessories, VAT and any customs duties. Where accessories are fitted after the car is made available, the cost of the accessories is added to the list price of the car, if they cost more than £100.

A contribution of up to £5,000 made by the employee towards the capital cost of the car is deductible for the list price for the benefit calculation.

If a car is over 15 years old and has a market value above £15,000, the market value will be used if higher than the original list price.


The percentage used to calculate the car benefit depends only on the carbon dioxide emissions of the car, according to the table above. Cars that use diesel fuel are subject to a 3% supplement.

Unavailable periods

Where a car is unavailable for private use for more than 30 consecutive days, the taxable benefit is reduced accordingly. A contribution made by the employee for the private use of the car will be deducted from the value of the benefit.

Pool car

The use of a pool car is tax free. A car only qualifies as a pool car for a year if all the following conditions are satisfied in that year.

  1. It is actually used by more than one director or employee and is not ordinarily used by any one of them to the exclusion of the others.
  2. Any private use is merely incidental to business use, and
  3. It is not normally kept overnight at or near the residence of any director or employee.

Fuel benefit

The charge for the provision of fuel for private purposes is the percentage used in calculating the car benefit multiplied by the multiplier in the above table. No charge applies for electrically propelled cars. If the provision of private fuel is withdrawn during the year, the fuel charge may be pro rated. Contributions by the employee for private fuel cannot be deducted from the charge, unless they are required to (and do) fully cover the cost of the fuel. In this case there is no benefit.


An annual charge in the above table applies for private use of company vans, except for commuting and incidental private use. A further charge, as per the above table applies for the provision of private fuel, reduced by employee contributions.

Add comment

Simple situations. Complex situations. If it goes on a Tax Return we deal with it. Contact us for a free, initial meeting.

Email us!