Car and Fuel Benefits
The taxable petrol and diesel car benefit is based on the car's CO2 emissions. It is calculated using the car's UK list price and applying the 'appropriate percentage' as shown in the table opposite. The first line of figures in the table relate to the new category of qualifying low emissions cars (QUALECs). Discounts of between 2% and 6% are given for cars other than QUALECs that can be driven on alternative fuels.
The car fuel benefit is calculated by applying the same percentages to the fuel multiplier, which for 2008/09 is increased from £14,400 to £16,900.
VAT on Fuel For Private Use in Cars
Where businesses wish to reclaim the input VAT on fuel which has some degree of private use, they must account for output VAT on a scale charge. The table shows the VAT chargeable for quarters commencing on or after 1 May 2008.
Company Vans
The taxable benefit for the unrestricted private use of vans is £3,000. There is a further £500 taxable benefit if the employer provides fuel for private travel.
