There are significant rises ahead for company car drivers in 2018. The upside of these changes is that we know they are coming and so new purchases of vehicles can take account of them.
Employer-provided car changes
From April 2018
For 2018/19, the appropriate percentages of the list price subject to tax for the 0-50gm/km band is 13% and 16% for the 51-75gm/km band. The rate is 19% for cars with CO2 emissions of between 76-94 gm/km, 20% for 95-99gm/km, etc. up to the maximum of 37%. To summarise, from 6 April 2018 the rules are:
- 0-50gm/km* - 13%;
- 51-75gm/km* - 16%;
- 76-94gm/km* - 19%;
- 95-99gm/km - 20%;
- graduated increases of 1% per 5gm/km up to a maximum, including the diesel supplement, of 37%.
Please Note: Where the emissions do not end in a 5 or 0, round down to the nearest 5 or 0 but not in the ranges marked with a *.
The government is retaining the diesel supplement in company car tax until 2021, when EU-wide testing procedures will ensure new diesel cars meet air quality standards even under strict real world driving conditions.
For cars without a registered CO2 emissions figure and which cannot produce emissions under any circumstances when being driven the appropriate percentage will be 13%.
The diesel supplement is increased to 4% and applies to diesel cars:
- first registered on or after 1 January 1998 but before 1 September 2017; and
- first registered on or after 1 September 2017 if it is a car with real driving emissions figures for NOx and either of those figures exceeds 80mgms/km driven or it is a car without real driving emissions figures for NOx.
A 'car with real driving emissions figures for NOx' means a car first registered on the basis of an EC certificate of conformity which declares, in terms of mgms/km driven:
- a maximum real driving emissions value for NOx for urban real driving emissions trips; and
- a maximum real driving emissions value for NOx for complete real driving emissions trips.
The changes take effect for 2018/19 onwards.
April 2019 onwards
In 2019/20, the appropriate percentages of the list price subject to tax for the 0-50gm/km band will be 16% and 19% for the 51-75gm/km band. The rate will be 22% for cars with CO2 emissions of between 76-94 gm/km, 23% for 95-99gm/km, etc. up to 37%.
For cars without a registered CO2 emissions figure and which cannot produce emissions under any circumstances when being driven the appropriate percentage will be 16%.
April 2020 onwards
In 2020/21 a new range of low-emission percentages will apply.
|Electric range of 130 or more||2|
|Electric range of 70-129 or more||5|
|Electric range of 40-69 or more||8|
|Electric range of 30-39 or more||12|
|Electric range of less than 30||14|
If a CO2 emissions figure or an electric range figure is not a whole number, round it down to the nearest whole number.
The appropriate percentage for a year for a car with a CO2 emissions figure of 75 or more is whichever is the lesser of:
- 20% plus one percentage point for each 5gm/km by which the CO2 emissions figure exceeds 75; and
'Electric range' is the number of miles which is the equivalent of the number of kilometres specified in an EC certificate of conformity, an EC type-approval certificate or a UK approval certificate on the basis of which a car is registered, as being the maximum distance for which the car can be driven in electric mode without recharging the battery.