Company Car Tax Numbers Surge
HMRC is issuing tax bills to 920,000 employees after the number of workers paying company car tax increased again in 2024/25. The latest HMRC Benefit-in-Kind (BiK) statistics show a 9.5% rise from 840,000 reported the previous year, an increase of 80,000 recipients.
This figure had previously declined from 960,000 in 2015-16 to a low of 720,000 in 2020-21, but has risen year on year since then, according to the tax authority.
Taxable Value Declines
The total taxable value of company car benefit fell to £3.07 billion in 2024-25, down from £3.27 billion in 2023-24. The average taxable value of car benefit has consistently decreased from £6,770 in 2019-20 to £3,330 in 2024-25.
Electric Cars Dominate
Fully electric cars now account for 51% of car benefit recipients. The number of reported recipients of company cars with CO2 emissions of 74g/km or less reached 693,000 in 2024-25, up from around 534,000 the previous year.
The average reported CO2 emission of company cars including electric cars was 41 g/km, compared to 56 g/km in the previous tax year. For cars with internal combustion engines, the average was 79 g/km.
Diesel Cars Decline
Diesel cars now account for just 7% of company cars in 2024-25, following a steady decline from 76% in 2017-18. Around 1% of company cars had reported CO2 emissions exceeding 165 g/km.
Fuel Benefit and Overall BiK
The number of reported fuel benefit recipients was estimated at 40,000 in 2024-25. The total taxable value of all Class 1A taxable benefits in kind was £9.5 billion in 2024-25, an increase of £0.6 billion from the previous year.
