Engine size
Diesel
1600cc or less
9p
1601cc to 2000cc
11p
Over 2000cc
13p (14p)
Hybrid cars are treated as either petrol or diesel cars for this purpose.
Follow this link for details on how the rates are calculated
Advisory Electricity Rate
The Advisory Electricity Rate for fully electric cars is 4 pence per mile.
Electricity is not a fuel for car fuel benefit purposes.
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The Van Benefit and Car and Van Fuel Benefit Order 2020 5 March 2020
The van benefit charge and fuel benefit charges for cars and vans for use from 6 April 2020 have been published. The figures will be increased as per below:
• Van Benefit Charge – increase from £3,430 to £3,490 • Car Fuel Benefit Charge – multiplier will increase from £24,100 to £24,500 • Van Fuel Benefit Charge – multiplier will increase from £655 to £666
Jesse Norman, the Financial Secretary to the Treasury, confirmed in a written statement that the announcement was being made outside of the normal fiscal process to give employers and HMRC sufficient time to prepare for the changes prior to tax year 2020-21.
A taxable benefit in the form of a Van Benefit Charge (VBC) arises in scenarios where an employee is provided with a company van and it is available for use for personal journeys.
From 6 April 2015 to 5 April 2022, there is a reduction in the VBC that applies for zero-emission vans. For tax year 2020-21, the VBC will increase to 80% from the 60% that applied in tax year 2019-20. Therefore, an employee who has a company van which they can use for private trips in tax year 2020-21, and it is zero-emission, would only pay tax on 80% of £3,490, so £2,792.
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The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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