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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 £696.

 

If you have any questions or would like to discuss your car benefit charge, call our helpful tax team today!