Company car tax – disabled driver relief

Disabled drivers who hold a blue badge and need to drive automatic company cars, can currently calculate their company car benefit using the CO2 emissions figure of an equivalent manual car.

From 6 April 2009, the same drivers are also allowed to use the list price of an equivalent manual car where this is lower, in the calculation of their car benefit.

If any of your employees are affected and require a change to their PAYE tax code, please advise them to contact their HMRC office.