Tax Rates 2004   Tax Rates 2004 Graphic
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Vehicle Benefits

Chargeable on employees earning £8,500 or over (including benefits), and directors.

Car Benefit

The tax you pay on your company car is governed by four factors:

  • the list price of the car, on the day before it was first registered, plus certain accessories,
  • the rate at which the car emits carbon dioxide (CO2),
  • the fuel type
    (for most types of car, this is all the information you need to work out the taxable benefit)
  • your highest rate of income tax.

You can find your taxable percentage for 2004/05 using the following table:

CO2 Taxable % CO2 Taxable % CO2 Taxable %
in g/km Petrol Diesel in g/km Petrol Diesel in g/km Petrol Diesel
Less than 150 15% 18% 180 to 184 22% 25% 215 to 219 29% 32%
150 to 154 16% 19% 185 to 189 23% 26% 220 to 224 30% 33%
155 to 159 17% 20% 190 to 194 24% 27% 225 to 229 31% 34%
160 to 164 18% 21% 195 to 199 25% 28% 230 to 234 32% 35%
165 to 169 19% 22% 200 to 204 26% 29% 235 to 239 33% 35%
170 to 174 20% 23% 205 to 209 27% 30% 240 to 244 34% 35%
175 to 179 21% 24% 210 to 214 28% 31% 245 and over 35% 35%

How to find out how much CO2 your company car emits – see:
  • the car’s V5 registration document
  • your dealer
  • the data pages of car magazines (current models)

Reliable emissions data is not widely available for cars registered before 1 January 1998. For them, the following taxable percentages apply, regardless of fuel type:

Engine capacity Taxable %
Up to 1400cc 15%
1401 - 2000cc 22%
Over 2000cc 32%


Van Benefit

  Van under 4 years old Van 4 years old, or over
Benefit per vehicle £500 £350


Car fuel benefits

If the employee pays for the full cost of all fuel for private journeys (usually including home to work) there will be no car fuel benefit. In all other cases the full tax charge will be due.

The taxable car fuel benefit is, for 2004/05, calculated by multiplying £14,400 by the same percentage as applies (or would apply) for the car benefit.

Example: A company car driver has a car which, on the day before it was first registered, had a list price of £18,000. It runs on petrol, and emits 182 g/km of CO2.

If we assume the driver pays tax at 40%, the annual tax bill on the car is: £18,000 x 22% x 40% = £1,584

If the employer provides any fuel used for private journeys and is not re-imbursed for the cost, the 2004/05 tax bill for the fuel is: £14,400 x 22% x 40% = £1,267.20.