Disabled company car drivers
Company car tax is calculated by multiplying the list price with the
appropriate percentage based on the CO2 emissions of the car.
The employee pays income tax on this figure and the company pay Class 1A
National Insurance on it. Often automatic cars have a higher list price
and CO2 emissions than equivalent manual cars.
Currently disabled company car drivers of automatic cars who hold a blue badge are able to use the CO2 emissions figure of an equivalent manual car when calculating their company car benefit charge. From 6th April 2009 they can also use the list price of an equivalent manual car.
This is a technical change to treat disabled drivers of manual company cars in line with disabled drivers of automatic company cars.