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calculate-tax-on-company-cars.html
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<span>Quick answer</span> Calculate tax on company cars</h1>
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<p>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 <abbr title="HM Revenue & Customs">HMRC</abbr>.</p>
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<p>You can do this by using:</p>
<ul>
<li>
<abbr title="HM Revenue & Customs">HMRC</abbr>’s <a rel="external" href="http://www.hmrc.gov.uk/calcs/cars.htm" title="company car and car fuel benefit calculator">company car and car fuel benefit calculator</a>
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<li>commercial payroll software</li>
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<p>Find out about <a href="/tax-company-benefits/tax-on-company-cars" title="Tax on company benefits: Company cars">tax on company cars if you’re an employee</a>.</p>
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<p>You can also work out the value manually on <a rel="external" href="http://search2.hmrc.gov.uk/kb5/hmrc/forms/view.page?record=QD3XDgv9U1E&formid=748" title="P11D working sheet 2">P11D working sheet 2.</a> You’ll have to use this method if both of the following apply during the tax year you’re reporting on:</p>
<ul>
<li>the car was unavailable for at least 30 consecutive days</li>
<li>you were providing fuel for private use, but stopped doing this</li>
</ul>
<h2>Taxable value</h2>
<p>The taxable value of a car is not the same as its cost. The taxable value also depends on:</p>
<ul>
<li>the amount of time the car is available during the tax year</li>
<li>the car’s fuel type and level of CO2 emissions</li>
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<p>‘Private use’ includes employees’ journeys between home and work, unless they’re travelling to a temporary place of work.</p>
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<p class="modified-date">Last updated: 10 January 2013</p>
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<a href="https://www.gov.uk/tax-company-benefits">Tax on company benefits</a>
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<a href="https://www.gov.uk/employer-reporting-expenses-benefits">Introduction to expenses and benefits for employers</a>
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<a href="https://www.gov.uk/report-a-company-car">Report a company car to HMRC</a>
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