Chartered Accountants
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Company cars
Approved mileage allowance payments
If an individual uses his or her own car for business it is currently possible to claim reimbursement from the employer at a mileage rate of 40p per mile for the first 10,000 business miles in a tax year and 25p per mile thereafter. These rates have been in place since April 2002. Finally, the higher rate is being increased to 45p per mile with effect from 6 April 2011.
Volunteer drivers may also use the revised rates. An exemption for passenger payments currently in place for employees at 5p per mile will be extended to volunteers.
Company car benefit
For employees and directors who are provided with a company car, the table of percentages used to calculate the benefit charge is being changed from 6 April 2013. This will broadly add one percentage point to all rates for emission levels between 95 g/km and 220 g/km and result in an increase in the value of the benefit in kind for income tax and class 1A national insurance.
Company car fuel benefit
The company car fuel benefit is calculated by multiplying a factor by the same percentage as is used to calculate the car benefit. Employees and directors who are provided with a company car and who also receive free fuel from their employers will see the multiplier on which the fuel benefit charge is calculated increase from £18,000 to £18,800 from 6 April 2011.
Contact Us
11 Castle Hill,
Maidenhead
Berkshire,
SL6 4AA
Tel: 01628 631056
Fax: 01628 631995
geoffk@knightandcompany.co.uk
VAT Number 697 5307 87
