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Cars
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[Taxation Index] [Income Tax] [Other Personal Taxes] [Business Taxes] [Budget Features]
CAR USE TAXATION AND MILEAGE TAX ALLOWANCES
COMPANY CARS PRIVATE USE:
1. CAR BENEFIT
Tax on Company Cars turned “green” with effect from 6 April 2002, when it became based upon the particular vehicle's CO2 polluting emissions. There are numerous rates.
2. COMPANY CARS FUEL - PRIVATE USE : SCALE CHARGES
From 2010/11 it is £ 18,800 x the % used to calculate the Car Benefit (above) Previously the figure was £ 16,900 for 2008/09, for 2007/08 back to 2003/04, the corresponding figure was £ 14,400.
VAT Quarterly Scale Charges
With effect from 1st accounting period on, or after 1 May 2007, the rates will be based upon CO2 emissions. For the cars too old to have official CO2 ratings, the scale charge band will be based upon engine capacity alone.
3. CARS & Vans - OWN - USED ON BUSINESS AS DIRECTOR OR EMPLOYEE:
From 2002/03:
The Authorized rates have no reference to engine size and are simply 40p per mile for the first 10,000 business miles and 25p per mile for such miles over 10,000.
VAT:
From 1 June 2010, both the tax and VAT offices will recognise the following as being the cost of mileage allowance fuel (i.e. capable of being treated as included within the above rates):
| Engine Size | Petrol | Diesel | LPG |
| Up to 1400ccs. | 12p | 11p | 8p |
| 1401 to 2000ccs. | 15p | 11p | 10p |
| over 2000ccs. | 21p | 16p | 12p |
The Employer’s position:
Provided the above mileage rates are not exceeded, the employer will have no liability to class 1A National Insurance in respect of reimbursed expenses.