Reporting the taxable benefit for company cars has always been a total pain, but now it is doubly so as there are two car benefit tables to juggle, as we explained on 19 September 2019.
To determine which table of appropriate percentages of list price you need to use for which car, you need to know when the vehicle was first registered – before or after 6 April 2020. The exact date is irrelevant, but the P11D form requires an exact date to be inserted. This is given on the car’s “log book” or registration certificate issued by the DVLA.
For all cars you need to know the CO2 emissions. This is given on a certificate issued with new cars, and also on the registration certificate.
Where the CO2 emissions figure is between 1 and 50g/km, the car must be a hybrid model, powered by both electricity and petrol or diesel. In this case you also need to know the number of miles the vehicle can travel on a single electricity charge. This is its zero emissions mileage.
Finally, you need to know the vehicle’s list price. This is not given on the registration certificate, but it may be on the order document for the new car.
Where the car is a “classic car” you need to know its current market value. A classic car is defined as 15 years old or more and worth at least £15,000. If the market value of a classic car exceeds its list price you must use the market value in place of the list price – as adjusted for any capital contributions made by the employee or accessories added to the vehicle.
Written by the Tax Advice Network