Introduction to this document

Flow chart - company car tax calculation

Where an employer makes a car available to an employee or director for private use it counts as a taxable benefit in kind. After each tax year the employer must report the taxable amount of the car benefit to HMRC. The calculation must be made using the rules set down in legislation and in the order specified.

Flow chart

Our Flow Chart - Company Car Tax Calculation will guide you through the process of working out the benefit in kind amount. Before you start you will need the list price and emissions figure for the car. You also need to take into account accessories fitted to the car and any employee contributions.


To help with factors affecting the calculation of the taxable amount for company cars use our Company Car Lump Sum Agreement and Company Car Running Costs Contribution Agreement.