Travel Rates and Allowances
Approved mileage rates
| From 2002/03 | First 10,000 business miles in the tax year | Each business mile over 10,000 in the tax year |
| Cars and Vans | 40p | 25p |
| Motor cylces | 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. You can find the appropriate percentages for petrol-powered cars.
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. 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.
If you would like any further information about our Benefits-in-Kind or Payroll services, or have any questions or comments, please contact us.
