Nigel Holland
Nigel Holland

” There is a benefits in kind tax on the use of company cars. A PIID form needs to be submitted to HMRC.

One tip is to get a car which has low CO2 emmissions.”

Nigel Holland

You’ll pay tax if you or your family use a company car privately, including for commuting.

You pay tax on the value to you of the company car, which depends on things like how much it would cost to buy and the type of fuel it uses.

This value of the car is reduced if:

  • you have it part-time
  • you pay something towards its cost
  • it has low CO2 emissions

If your employer pays for fuel you use for personal journeys, you’ll pay tax on this separately.

If you drive a hybrid

If your company car has CO2 emissions of 1 to 50g/km, the value of the car is based on its zero emission mileage figure, or ‘electric range’. This is the distance the car can go on electric power before its batteries need recharging.

Contact your employer to find out your car’s zero emission mileage figure.

Check or update your company car tax

Tell HM Revenue and Customs (HMRC) if your car or fuel details change. You can check or update your company car tax online, for example if:

  • you get a company car or give one back
  • your employer starts or stops paying for fuel for you to use personally

If a change affects the value of the car, HMRC will update your tax code so you pay the right tax.

Estimating the tax you’ll pay

You can see how much tax you might pay with HMRC’s company car and fuel benefit calculator.