
From 2018/19 company car tax is up 2% for cars which emit 180-184 CO2 g/km and up 1% for vehicles which emit 185-189 CO2 g/km, with HMRC updating its tax rate table to include a separate row for electric cars which release zero CO2 emissions despite leaving out the tax rates for 2020-2021
Zero emission electric cars have now been given their own tax band although they are still charged at the same amount as cars who emit 1-50 g/km in CO2 emissions.
From 2018-19 all cars who emit 180 CO2 g/km and over will have to pay the equivalent of 37% of the list price of the car in tax. This is up 2% from 2016/17 for cars which fall into the 180-184 emissions band and up 1% for cars in the 185-189 band.
In its updated table HMRC has not yet included the 2020-21 tax rates.
HMRC has also included the 4% diesel supplement charge for diesel vehicles that are not certified to the Real Driving Emissions 2 (RDE2) standard.
From 2018 the diesel supplement charge increases by 1% for all diesel cars which are not conforming to the new RDE2 standard. Cars that do meet the standards will have the supplement scrapped.
Company car tax rates from 2018 to 2020 are as follows:
2018/19 | 2019/20 | ||
CO2 g/km | % of list price taxed | CO2 g/km | % of list price taxed |
Electric (0) | 13 | Electric (0) | 16 |
1-50 | 13 | 1-50 | 16 |
51-75 | 16 | 51-75 | 19 |
76-94 | 19 | 76-94 | 22 |
95-99 | 20 | 95-99 | 23 |
100-104 | 21 | 100-104 | 24 |
105-109 | 22 | 105-109 | 25 |
110-114 | 23 | 110-114 | 26 |
115-119 | 24 | 115-119 | 27 |
120-124 | 25 | 120-124 | 28 |
125-129 | 26 | 125-129 | 29 |
130-134 | 27 | 130-134 | 30 |
135-139 | 28 | 135-139 | 31 |
140-144 | 29 | 140-144 | 32 |
145-149 | 30 | 145-149 | 33 |
150-154 | 31 | 150-154 | 34 |
155-159 | 32 | 155-159 | 35 |
160-164 | 33 | 160-164 | 36 |
165-169 | 34 | 165-169 | 37 |
170-174 | 35 | 170-174 | 37 |
175-179 | 36 | 175-179 | 37 |
180-184 | 37 | 180-184 | 37 |
185-189 | 37 | 185-189 | 37 |
190-194 | 37 | 190-194 | 37 |
195-199 | 37 | 195-199 | 37 |
200-204 | 37 | 200-204 | 37 |
205-209 | 37 | 205-209 | 37 |
210-214 | 37 | 210-214 | 37 |
215 or more | 37 | 215 or more | 37 |
The 2020-21 company car tax rates were announced at Autumn Budget 2017. These tax rates follow a different format with 1-50 tax band split by zero emission miles which each have their own rate.
The 2020-21 tax rates are here:
CO2 g/km | % of list price taxed |
Electric (0) | 2 |
1-50 (split by zero emission miles) | >130 - 2 |
51-54 | 15 |
55-59 | 16 |
60-64 | 17 |
65-69 | 18 |
70-74 | 19 |
75-79 | 20 |
80-84 | 21 |
85-89 | 22 |
90-94 | 23 |
95-99 | 24 |
100-104 | 25 |
105-109 | 26 |
110-114 | 27 |
115-119 | 28 |
120-124 | 29 |
125-129 | 30 |
130-134 | 31 |
135-139 | 32 |
140-144 | 33 |
145-149 | 34 |
150-154 | 35 |
155-159 | 36 |
160 or more | 37 |
Report by Amy Austin