Travel - Rates and Allowances
| From 2011/12 | First 10,000 Business Miles In The Tax Year | Each Business Mile Over 10,000 In The Tax Year |
|---|---|---|
| Cars And Vans | 45p | 25p |
| Motor Cycles | 24p | 24p |
| Bicycles | 20p | 20p |
Passenger payments - cars and vans
5p per passenger per business mile for carrying fellow employees in a car or van on journeys wich are also work journeys for them.
| Engine capacity | Petrol | Diesel | LPG |
|---|---|---|---|
| up to 1400cc | 14p | 13p | 10p |
| 1401 - 2000cc | 16p | 13p | 12p |
| Over 2000cc | 23p | 16p | 17p |
The HM Revenue & Customs advisory rates can be applied as a tax-free maximum rate for employees claiming for petrol used on business journeys and for employees reimbursing their employers with the cost of petrol used for private journeys. HM Revenue & Customs will consider claims for a higher maximum rate, if it can be demonstrated that it is necessary for an employee to use a car with higher than average fuel costs. The rates are reviewed twice a year. Any charges usually take effect on 1st June and 1stDecember.
Company Cars
The charge is based on the price of the car for tax purpose (normally the list price) and accessories multiplied by an appropriate percentage based on the CO2 emissions and the fuel the car uses.
A new lower rate of 10% (13% for diesels) of the list price for cars with CO2 emissions of 120 grams per kilometre or less will have effect on 6 April 2008.
From 6 April 2008 the emissions level that will qualify a car for a benefit of 15% of the list price reduces to 135g/km CO2. On 6 April 2010 the level reduces again to 130g/km CO2.
The threshold CO2 emissions rate is reduced to 135 g/km from 6 April 2008. The rate of the taxable benefit ranges from 10% to 35% of list price (plus certain accessories) for most petrol or diesel-powered cars.
You can find your taxable percentage of the list price for 2010/11:
| Value | Petrol | Diesel |
|---|---|---|
| 0 - 75 g/km | 5% | 8% |
| 76 - 120 g/km | 10% | 13% |
| 121 - 130 g/km | 15% | 18% |
Over 130 g/km + 1% for every extra 5 g/km. Maximum of 35% for petrol and diesel
Additional Information – Company Cars
Changes from 6th April 2011
- There will be no reduction for alternative fuels
- The diesel surcharge will apply to all diesels
- The £80,000 limit for the price of a car for benefit will no longer apply
- The lower C02 emission threshold will be reduced to 125 g/km
Changes from 6th April 2012
The lowest 10% will apply to cars with CO2 emissions up to 99 g/km.
The rate for emissions for 100 g/km will be 11% and will increase by 1% for every 5 g/km to the current maximum of 35%
Fuel charges - company cars
Cars: to calculate the benefit
charge on free or subsidised fuel for private use, the appropriate
percentage used in calculating car benefit is multiplied by a set figure
for the tax year. The current multiplier for 2011/12 is £18,800
(£18,000 2010/11).
Charges if private use is more than home to work
| Type | Year To 2010/11 |
Year From 2011/12 |
|---|---|---|
| Vans Benefit |
£3,000 | £3,000 |
| Fuel Benefit |
£500 | £550 |