Sarah Bradford looks at the changes to the taxation of company vehicles over the next few years.
An employee may have the use of a company vehicle – this may be a company car, or a van that they use for work. Where the vehicle is available for private use, in most cases, the employee will be taxed on the resulting benefit. If the employer also meets the cost of fuel for private journeys, a further tax charge may arise.
The taxation of company vehicles is not static, and changes apply both for 2025/26 and beyond.
Company cars
Where an employee has a company car available for their private use, they are taxed on a percentage of the list price of that car and of any optional accessories. The percentage, which is known as the appropriate percentage, depends on the level of the car’s CO2 emissions. The list price is adjusted to reflect any capital
