Car benefit assessment & Mileage Allowances - Cutter & Co Chartered Accountants

Car Benefit Assesment

Charge based on a percentage of the initial list price of the car, including accessories, delivery charges and VAT. The percentage depends on the carbon dioxide emissions rating of the car, and whether the engine runs on petrol or diesel. For 2010/11, the taxable benefit on an electric car (no emissions) is nil.

Ratings	Petrol	Diesel

0-75g/km	5%	8%
76-120g/km	10%	13%
121-130g/km	15%	18%
over 130g/km	+1% for each extra 5g/km (135,140 etc.)
Maximum	35%	35%

Special rules apply to older cars which do not have a CO2 rating. Employee contributions for private use are deducted from the taxable figure. Company vans are charged at £3,000 if private use is more than home-to-work travel. An additional amount of £550 is charged if fuel is provided free for private use. There is no taxable benefit on an electric van.

Car fuel benefit

The benefit of free fuel for private use in a company car is calculated using the same percentage as that used for the car benefit, applied to a standard figure of £18,000 (2009/10: £16,900). The taxable amount is therefore between £900 (min) and £6,300 (max).

		2010/11 & 2009/10
Higher Rate	Lower Rate
All cars		40p	25p
Motorcycles		24p	24p
Bicycles		20p	20p
Business passengers		5p	5p

Higher Rate allowed up to 10,000 business miles.

Fuel-only allowances for company cars
From 1.6.2010 (From 1.12.2009)

	Petrol	Diesel	LPG
Up to 1400cc	12p (11p)	11p (11p)	8p (7p)
1401 – 2000cc	15p (14p)	11p (11p)	10p (8p)
Over 2000cc	21p (20p)	16p (14p)	14p (12p)

These figures may change more often than once a year.