Company car tax diesel supplement
15 February 2019
Diesel cars which meet the levels of Nitrogen Oxide (NOx) emissions, permitted by Euro standard 6d, qualify for exemption from the entire diesel supplement.
For the 2019 to 2020 tax year, information will be available from the Driver Vehicle Licencing Agency (DVLA). For cars manufactured after September 2018, the online Vehicle Enquiry Service will help you identify whether a car meets Euro standard 6d.
Euro standard 6d information is also available on the form V5C for cars registered from 1 September 2018 onwards.
If the Euro status of the car is shown as Euro 6AJ, 6AK, 6AL, 6AM, 6AN, 6AO, 6AP, 6AQ or 6AR, the car meets Euro standard 6d.
How to report a diesel company car which is new or made available to an individual for the first time during the 2019 to 2020 tax year, and which complies with Euro standard 6d
From 6 April 2019, a new fuel type will be shown on form P46 (car) called ‘Fuel Type F – Diesel cars meeting Euro standard 6d’. This fuel type should be used for reporting diesel company cars which are Euro standard 6d compliant. This replaces previous guidance which advised these cars being reported as fuel type ‘A’.
Payrolling the car and car fuel benefit for a diesel company car which is Euro 6d compliant
If you have registered to payroll the car and car fuel benefit charge in the 2019 to 2020 tax year for a Euro standard 6d compliant diesel car:
- calculate the cash equivalent using the appropriate percentage for ‘Fuel Type F’
- enter this amount in ‘Box 182’ of the Full Payment Submission (FPS)
- enter ‘F’ in ‘Box 177’ of the FPS.
Calculating the cash equivalent
From the 2019 to 2020 tax year onwards, if you use the HMRC online calculator or other business tools to calculate cash equivalent for company cars, there will be a new fuel type ‘Fuel Type F – Diesel cars meeting Euro standard 6d’. This should be used when calculating the value for diesel company cars which are Euro 6d compliant.