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Company Car Tax 2015/16 To 2019/20: Plan Now For Low Payments

By Stephen Turvil | January 11, 2016

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UK company car tax rates for 2015/16 to 2019/20 confirmed. Plan now to keep benefit-in-kind payments low for the long term.

Company Car Tax 2015/16 To 2019/20: Plan Now For Low Payments

Company Car Tax Rates Set To Rise

The UK Government has confirmed company car tax, benefit-in-kind, rates up to 2019/20 to enable motorists to pick vehicles with affordable liabilities now, and in the future. That is important as executives tend to commit to multi year contracts. A key consideration is that some cars with fairly low liabilities in 2016/17 become far more expensive for 2019/20. Let us consider why.

Company car tax is based on a vehicle's P11D value that incorporates its list price, delivery, extras and registration plates. Let us say £20,000. Tax is then paid on a percentage of this sum, but which percentage is defined by the model's emissions.

Imagine it is a petrol vehicle that produces carbon at a rate of 105g/km. The 2016/17 figure is 18% which – based on the £20,000 P11D is £3,600. Tax is charged on the lower sum at the motorist's income tax rate of 20%, 40% or 45%. Let us assume it is the cheapest. 20% of the £3,600 is £720. However, the 18% rises to 25% for 2019/20 which equates to £1,000. Such rises are part of a wider plan to encourage drivers to pick increasingly eco-friendly models.

 

Useful Links

Understanding Company Car Tax

Ten of the most popular company cars

Company Car Tax Rates: 2015/16, 2016/17, 2017/18, 2018/19 & 2019/20

% of P11D2015/162016/172017/182018/192019/20
 CO2 (g/km)CO2 (g/km)CO2 (g/km)CO2 (g/km)CO2 (g/km)
0N/AN/AN/AN/AN/A
50-50N/AN/AN/AN/A
7N/A0-50N/AN/AN/A
951-75N/A0-50N/AN/A
10N/AN/AN/AN/AN/A
11N/A51-75N/AN/AN/A
12N/AN/AN/AN/AN/A
1376-94N/A51-750-50N/A
1495-99N/AN/AN/AN/A
15100-10476-94N/AN/AN/A
16105-10995-99N/A51-750-50
17110-114100-10476-94N/AN/A
18115-119105-10995-99N/AN/A
19120-124110-114100-10476-9451-75
20125-129115-119105-10995-99N/A
21130-134120-124110-114100-104N/A
22135-139125-129115-119105-10976-94
23140-144130-134120-124110-11495-99
24145-149135-139125-129115-119100-104
25150-154140-144130-134120-124105-109
26155-159145-149135-139125-129110-114
27160-164150-154140-144130-134115-119
28165-169155-159145-149135-139120-124
29170-174160-164150-154140-144125-129
30175-179165-169155-159145-149130-134
31180-184170-174160-164150-154135-139
32185-189175-179165-169155-159140-144
33190-194180-184170-174160-164145-149
34195-199185-189175-179165-169150-154
35200-204190-194180-184170-174155-159
36205-209195-199185-189175-179160-164
37210+200+190+180+165+

* Add 3% for diesels up to maximum 37% (2015/16). 
* Scrapping of diesel supplement postponed to April 2021.

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