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Other relevant issues

Vehicle Excise Duty (VED)

Vehicle Excise Duty (VED) - For vehicles registered since 1st March 2001, the CO2 shown on the V5 (Registration Document) is used as the basis for applying VED rates for new passenger cars. The current rates of VED can be found here: https://www.gov.uk/vehicle-tax-rate-tables

Further information about taxing your vehicle can be found on the Gov.uk website: https://www.gov.uk/tax-disc  A vehicle tax calculator is available on the VCA website http://carfueldata.direct.gov.uk/.  The purpose of this calculator is to provide an indicative view only of the tax that may be payable on a given new or used car.

Company Car Tax – Since April 2002 the benefit-in-kind tax charged for company cars has been based on the CO2 emissions of a vehicle. This applies to all company cars registered from January 1998 onwards. Further details can be found on the Gov.uk website https://www.gov.uk/tax-company-benefits/tax-on-company-cars For cars registered from March 2001, the CO2 figure used to calculate company car tax will be that shown on the car's V5 (Registration Document).

Fuel Benefit Charge – The fuel benefit charge is also based on the CO2 emissions of a vehicle (using the same percentages as per company car tax). Electric charging is exempt from the fuel benefit charge, as electricity is not a fuel.

Van Benefit Charge - Van benefit charge is levied when employers provide employees with a van for private (as well as business) use. The charge is set at a flat rate (currently £3,150 in 2015-16) and the employee pays income tax on this amount and the employers pays NICs. Vans with zero emissions (i.e. electric vans) will pay 20% of the van benefit charge for vans which emit CO2 in 2015/16.

Van Fuel Benefit Charge - If an employer gives an employee a van to use which is subject to the van benefit charge and pays their fuel, they will need to pay a fuel benefit charge. Van Fuel Benefit Charge is based on a flat rate charge (currently £594 for 2015-16). Electric vans are exempt from the fuel benefit charge, as electricity is not a fuel.

Enhanced Capital Allowances – low emission cars and electric vans can quality for 100% first year allowances. Further details can be found here. http://www.hmrc.gov.uk/capital-allowances/fya/energy.htm

Link to Information on Car Fuel Data and CO2 emissions - next page

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