C02 Guide

After the Government changed the rules relating to company car taxation (Benefit in Kind), the CO2 of your car is more important than ever. Also, the HMRC have changed the taxation rules for business users and CO2 also has a large impact on the contract hire rental of your vehicle.

Please see below a table supplied by HMRC and can be found on their website www.hmrc.gov.uk

CO2 Rating in g/km	% of cars P11D price taxed			CO2 Rating in g/km	% of cars P11D price taxed
	Tax Year 2008 - 09	Tax Year 2009 - 10	Tax Year 2010 - 11		Tax Year 2008 - 09	Tax Year 2009 - 10	Tax Year 2010 - 11
120	10	10	10	200	28	28	29
121 - 134	15	15	15	205	29	29	30
135 - 139	15	15	16	210	30	30	31
140	16	16	17	215	31	31	32
145	17	17	18	220	32	32	33
150	18	18	19	225	33	33	34
155	19	19	20	230	34	34	35
160	20	20	21	235	35	35	35
165	21	21	22	240	35	35	35
170	22	22	23	245	35	35	35
175	23	23	24	250	35	35	35
180	24	24	25	255	35	35	35
185	25	25	26	260	35	35	35

To calculate how much company car tax you will pay, please use the following calculation:

P11D Value of car (this is the OTRP of the vehicle, including all factory fit options less RFL & First Registration fee)
X
CO2 Rating (from above table) for the current tax year.
X
PAYE tax level (ie 40% or 20%)

=

Annual Tax Bill (For monthly tax bill just divide the above by 12)

IF you have any more questions, please “ASK THE EXPERT” and we will get back to you within 24 hours with the right answer.

To find the CO2 rate of any UK vehicle, please click on the link below for VCA Car Fuel Data:

http://www.vcacarfueldata.org.uk/search/search.asp
*Please see below for Fuel Type Amendments

Type of Fuel	Code	Standard Adjustment
Petrol	P	None
Diesel (not Euro IV)	D*	Supplement of 3%
Diesel (Euro IV) first registered on or before 31st December 2005	L	Cancel code D supplement above
Diesel (EuroIV) first registered on or after 1st January 2006	L*	Supplement of 3%
Electric only	E	Reduction of 6%
Petrol/Electric hybrid	H***	Reduction of 3%
Gas only	B**	Reduction of 2%
Bi-Fuel with CO2 emission figure for gas	B**	Reduction of 2%
Bi-Fuel conversion, or other bi-fuel not within type B	C***	None
Car manufactured to be capable of running on E85 fuel	G***	Reduction of 2%(from 2008/2009 only)

*Subject to overall maximum appropriate percentage of 35%
**Bi-Fuel car meeting the conditions to be type B car.
***These adjustments do not apply to qualifying low emission cars, nor to any diesel/electric hybrid cars that may become available.

PLEASE NOTE THAT THE ABOVE IS FOR GUIDANCE ONLY. PLEASE CONSULT A QUALIFIED ACCOUNTAT OR VIST www.hmrc.gov.uk