As an employer, if you provide company cars or fuel for your employees’ private use, you’ll need to work out the taxable value so you can report this to HM Revenue and Customs (HMRC).
‘Private use’ includes employees’ journeys between home and work, unless they’re travelling to a temporary place of work.
Find out about tax on company cars if you’re an employee.
Work out taxable value
You can calculate taxable value using:
- HMRC’s company car and car fuel benefit calculator
- commercial payroll software
You can also work out the value manually on P11D working sheet 2. You’ll have to use this method if both of the following apply during the tax year you’re reporting on:
- the car was unavailable for at least 30 consecutive days
- you were providing fuel for private use, but stopped doing this
Taxable value of cars
The taxable value of a car is not the same as its cost. The taxable value also depends on:
- the car’s fuel type and level of CO2 emissions
- the amount of time the car is unavailable during the tax year eg because of a mechanical fault