Like any other workplace perk, a company owned or leased vehicle which is available for private journeys is classed as a taxable Benefit-in-Kind . The amount drivers pay is heavily influenced by their car’s CO2 emissions, which has made businesses an early adopter of hybrids, as these have escaped some of the eco penalties levied on diesel cars.
The foundation is what’s called the ‘taxable value’ – a percentage of the car’s list price which becomes progressively larger for models with higher CO2 emissions. Tax bands were revised in April 2020, introducing ultra-low rates for cars with CO2 emissions of 50g/km or less and differentiating between them based on their electric range.
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