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The car benefit is chargeable on employees earning £8,500 or over per year (including
benefits), and directors. The charge is calculated by multiplying two figures:
the initial list price of the car, including accessories, delivery charge and VAT
the appropriate percentage, which is normally based on the car’s carbon dioxide (CO2) emissions rating, and whether the engine runs on petrol or diesel.
The table below gives the carbon dioxide emissions ratings for 2008/09. The exact carbon dioxide emissions figure is rounded down to the nearest 5g/km.
 
0-135
15
18
170
22
25
205
29
32
140
16
19
175
23
26
210
30
33
145
17
20
180
24
27
215
31
34
150
18
21
185
25
28
220
32
35
155
19
22
190
26
29
225
33
35
160
20
23
195
27
30
230
34
35
165
21
24
200
28
31
235 & over
35
35
Older Cars
For cars registered before 1 January 1998, the following percentages apply:
Company Vans
Company are vans charged at £3,000 (2008/09: £3,000) iif private use is more than home-to-work travel. An additional amount of £500 (2007/08:£500l) is charged if fuel is provided free for private use.
  
Engine size
0 - 1400 cc
1401 - 2000 cc Over 2000 cc
Percentage
15%
22%
32%
Car fuel benefit
The benefit of free fuel for private use in a company car is calculated using the same percentage as that used for the car benefit, applied to a standard figure of £16,900 (2007/08 - £14.400. From 6 April 2008 there is a 2% discount for cars manufactured to run on E85 fuel.
 
Employee Contributions
Employee contributions for private use are deducted from the taxable figure.
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