As in 2007/8, the method of calculating your company car tax liability in 2008/9 depends on your car’s P11D price and CO2 emissions, and whether or not it is a diesel.

Emissions figures and environmental compliance status can be obtained from manufacturer information or the Vehicle Certification Agency at www.vcacarfueldata.org.uk/search.

All diesel cars registered on or after January 1, 2006, are liable to a 3% charge on account of diesel’s higher emissions of ‘local’ pollutants.

In 2008/9 a new Volkswagen Tiguan SE 2.0 TDI 5dr, for example, with a P11D price of £21,545 and CO2 emissions of 189g/km will attract a tax charge of 28% of its P11D value.

Thus £21,545 x 28% gives a taxable value of £6,033, equating to a yearly tax bill of £1,207 (£101 per month) for a 20% tax payer or £2,413 (£201 per month) for a 40% tax payer.

• Vehicle excise duty (VED) in 2008/9
• 2009 vehicle excise duty reform
• Company car tax in 2008/9
• Company car tax: calculating your benefit-in-kind liability in 2008/9
• Business mileage in a private car: reimbursement rates in 2008/9
• Employer-provided ‘free’ fuel for private mileage: benefit or liability?
• Capital allowances to be based on emissions of CO2 from April 2009
• Calculation of employers’ Class 1A National Insurance Contributions
• Company vans
• Biofuels