How it’s worked out - and how to work out yours
Nowadays company cars are taxed according to a sliding scale benefit in kind charge, based on CO2 emissions and the P11D value of the car. (The P11D value is the Recommended Retail Price (RRP) minus the Vehicle Excise Duty (VED) and first registration fee.)
In simple terms, it means that those with bigger, thirstier, or dirtier cars (in terms of emissions that is) pay more tax.
Fortunately, smarts have clean engines and low P11D values, so business drivers can keep their tax to a minimum – which is a pretty happy situation all round.
Use the smart UK comprehensive tax calculator to see how much you would pay.