Road Tax Bands (VED Bands)

The chart below shows the annual Road Tax costs for new cars in each of the Road Tax bands, following the budget on 21st March 2012.  The VED (Vehicle Excise Duty) is based on the emissions of the car (in CO2 g/km), and could help you make an informed decision on your net new car purchase.

Vehicle Excise Duty from April 1 for cars registered on or after 1 March 2001

 *Alternative fuel discount 2010-11 onwards £10 all cars

** Includes cars emitting over 225 g/km registered before March 23, 2006

• Band A New Cars
• Band B New Cars
• Band C New Cars
• Band D New Cars
• Band E New Cars
• Band F New Cars
• Band G New Cars
• Band H New Cars
• Band I New Cars
• Band J New Cars
• Band K New Cars
• Band L New Cars
• Band M New Cars

When a company car is made available for the private use of an employee the Government see this as a taxable 'benefit in kind.'

The "company car tax" or income tax that your employer will deduct from your salary for use of a company car will be calculated based on:

1. how much your earn 
2. the value of the company car you are driving
3. the CO2 output and engine size of the company car you are driving
4. any capital contribution or payments you make towards buying the company car
5. the fuel if that is also provided for private use

If you are considering what car to order as your next company car, you have probably been given a recommended budget and CO2/engine size target to aim for. In which case you can use our Co2 search tool on the homepage for ideas. Or search by car type too.

If you want to do a more detailed calculation of your company car tax liabilities, then the Government company car tax calculator can be found here.

Company Car Tax 2011, 2012, 2013, 2014, 2015, 2016