Business as usual – we’re operating remotely once again. During this time, please may we ask you visit the office for scheduled record drop off only.

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!