Rates and Allowances - Travel
| From 2002-2003 | First 10,000 business miles in the tax year | Each business mile over 10,000 miles in the tax year |
|---|---|---|
| Cars and vans | 40p | 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 which are also work journeys for them. Only payments specifically for carrying passengers count and there is no relief if you receive less, or nothing at all.
Company Cars
The charge is based on the price of the car for tax purposes (normally the list price) and accessories multiplied by an appropriate percentage based on the level of CO2 emissions and the fuel the car uses. There is a ready-reckoner of appropriate percentages for petrol-powered cars and summaries of adjustments to those percentages for years from 2002/03 to 2005/06 and for years from 2006/07 onwards.
Company Vans
The rules on which the charge is based were changed from 2005/06. The charges are:
| Type | years to 2006/07 | years from 2007/08 |
|---|---|---|
| van less than 4 years old at the end of the tax year | £500 | £3,000 |
| all other vans | £350 | £3,000 |
Fuel charges – company cars and vans
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. From 2003-04 the set figure is £14,400.
Vans: the fuel charge began in 2005-06 but only has practical effect from 2007-08, when the benefit charge for a year is £500.
Advisory fuel rates – company cars
You can find the current rates, plus an explanation of how the rates can be used and earlier rates, on the HM Revenue website.
Company car and car fuel calculator – company cars
You can calculate car and car fuel benefits by using the interactive calculator.
