Benefit in Kind
Depending on when the vehicle was registered, changes to the car benefit are set for this coming tax year. With the 0% tax charge on Zero emission cars coming to an end.
For vehicles registered from 6 April 2020:
- Zero emissions will be charged at 1% of the list price for the tax year 2021/22, increasing to 2% in 2022/23
- A 1% increase to all other bands from 2020/21 to 2021/22 & 2022/23.
For vehicles first registered before 6 April 2020:
- Zero emissions will be charges as above at 1% of the list price for the tax year 2021/22, increasing to 2% in 2022/23
- There will be no increases in other percentages until after 2022/23
Benefits are based on C02 emissions. Depending on the vehicle emissions, a percentage of the vehicle list price will be charged as an untaxed benefit. The charge percentage for low emission/ hybrid cars will depend on the mileage range.
2021/22 Tax rates
Registered from 6th April 2020: Registered before 6 April 2020
| CO2 g/km | 0% Range (miles) | % of list price | % of list price |
| Zero | 1% | 1% | |
| 1-50g | >130 miles | 1% | 2% |
| 70-129 | 4% | 5% | |
| 40-69 | 7% | 8% | |
| 30-39 | 11% | 12% | |
| < 30 miles | 13% | 14% | |
| 51-54g | 14% | 15% | |
| 55-59g | 15% | 16% | |
| Each additional 5g | +1% | +1% | |
| Maximum at 160g+ | 37% | 37% |
As vehicles registered before 6 April 2020 were taxed at a higher rate previously, this freeze to chargeable percentage will result in 2022/23 both vehicles registered before or after 6 April 2020 having the same taxable percentage.
The van benefit for 2021/22 is £3,500 unless insignificant private use, with a Nil benefit in kind for zero emission vans.
Private fuel benefit for cars is calculated based on £24,600 x % based on CO2 emissions. Private fuel benefit charge for a company van is £669.
If you have any questions or would like to discuss your car benefit charge, call our helpful tax team today!