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.

Work out taxable value

You can calculate taxable value using commercial payroll software.

Or you can use HMRC’s company car and car fuel benefit calculator if it works in your browser. Choose fuel type ‘E’ for electric cars.

Work out the value manually

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: