Travel - mileage and fuel allowances
|
Approved mileage rates |
|
From 2002/03 to 2010/11 |
First 10,000 bus miles |
Over 10,000 bus miles |
|
Cars and vans |
40p |
25p |
|
Motor cycles |
24p |
24p |
|
Bicycles |
20p |
20p |
|
Approved mileage rates |
|
From 2011/12 |
First 10,000 bus miles |
Over 10,000 miles |
|
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 which are also work journeys for them.
Only payments specifically for carrying passengers count and there
is no relief if you receive less than 5p 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. Please contact us for further details.
Company Vans
The rules on which the charge is based were changed from 2005/06.
The charges are:
|
This is a simple sample table |
|
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. The
set figure is £14,400 from 2003/04 to 2007/08 and £16,900 for
2008/09 onwards.
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
Company cars - advisory fuel rates from 1 June 2011
These rates apply to all journeys on or after 1 June 2011 until
further notice. For one month from the date of change, employers
may use either the previous or new current rates, as they choose.
Employers may therefore make or require supplementary payments if
they so wish, but are under no obligation to do either.
|
Engine size |
Petrol |
LPG |
|
1400cc or less |
15p |
11p |
|
1401cc to 2000cc |
18p |
13p |
|
Over 2000cc |
26p |
18p |
|
Engine size |
Diesel |
|
1600cc or less |
12p |
|
1601cc to 2000cc |
15p |
|
Over 2000cc |
18p |
Petrol hybrid cars are treated as petrol cars for this purpose.
These rates are calculated from the fuel prices in the tables
below:
Petrol
|
Engine size(cc) |
Mean MPG |
Applied MPG |
Fuel price (per litre) |
Fuel price (per gallon) |
Pence per mile |
AFR |
|
up to 1400 |
47.36 |
40.3 |
136.1 |
618.8 |
15.4 |
15 |
|
1401 - 2000 |
40.21 |
34.2 |
136.1 |
618.8 |
18.1 |
18 |
|
over 2000 |
28.22 |
24.0 |
136.1 |
618.8 |
25.8 |
26 |
Diesel
|
Engine size(cc) |
Mean MPG |
Applied MPG |
Fuel price (per litre) |
Fuel price (per gallon) |
Pence per mile |
AFR |
|
Up to 1600 |
60.48 |
51.4 |
140.8 |
639.9 |
12.4 |
12 |
|
1601 to 2000 |
50.24 |
42.7 |
140.8 |
639.9 |
15.0 |
15 |
|
Over 2000 |
41.45 |
35.2 |
140.8 |
639.9 |
18.2 |
18 |
LPG
|
Engine size(cc) |
Mean MPG |
Applied MPG |
Fuel price (per litre) |
Fuel price (per gallon) |
Pence per mile |
AFR |
|
up to 1400 |
37.9 |
32.2 |
77.3 |
351.4 |
10.9 |
11 |
|
1401 - 2000 |
32.2 |
27.3 |
77.3 |
351.4 |
12.9 |
13 |
|
over 2000 |
22.6 |
19.2 |
77.3 |
351.4 |
18.3 |
18 |
Notes:
1.
Mean mpg -
miles per gallon - from manufacturers' information, weighted by
annual sales to businesses (Fleet Audits, 2009).
2.
Applied
mpg - adjusted downwards by 15 per cent to take account of real
driving conditions and lower fuel economy for older cars. This is
the same figure as used by The Energy Saving Trust
3.
For LPG,
mpg is assumed to be 20 per cent lower than for petrol due to
lower volumetric energy density.
4.
Department
for Business, Innovation & Skill's latest petrol and diesel prices
(24/05/2011), LPG (UK Average) from AA website (May 2011).
VAT
HMRC will also accept the figures in the table for VAT purposes
though employers will need to retain receipts in line with current
legislation.
