6
Spring Budget 2017
Tax and travel Car and fuel benefits
Appropriate percentage
CO
emissions
2
Petrol %
Diesel %
(g/km)
The taxable petrol and diesel car benefit is based on the car's CO 2 emissions. It is calculated using the car's UK list price and applying the 'appropriate percentage', as shown in the table on the right. The car fuel benefit is calculated by applying the same percentages to the fuel benefit charge multiplier, which for 2017/18 is £22,600. VAT on fuel for private use in cars Where businesses wish to reclaim the input VAT on fuel which has some degree of private use, they must account for output VAT for which they may use the flat rate valuation charge. Company vans The taxable benefit for the unrestricted private use of vans is £3,230. There is a further £610 taxable benefit if the employer provides fuel for private travel.
0 - 50
9
12
51 - 75
13
16
76 - 94
17
20
95 - 99
18
21
100 - 104
19
22
105 - 109
20
23
110 - 114
21
24
115 - 119
22
25
120 - 124
23
26
125 - 129
24
27
130 - 134
25
28
Van and fuel charge
Van £
Fuel £
Total £
135 - 139
26
29
Tax (20% taxpayer)
646.00
122.00
768.00
140 - 144
27
30
145 - 149
28
31
Tax (40% taxpayer)
1,292.00
244.00
1,536.00
150 - 154
29
32
Tax (45% taxpayer)
1,453.50
274.50
1,728.00
155 - 159
30
33
Employer's Class 1A NICs
445.74
84.18
529.92
160 - 164
31
34
The benefit charge for zero emission vans for 2017/18 is 20% of the standard benefit charge. There is no fuel benefit for such vans. Mileage rates Changes to the HMRC business mileage rates are announced from time to time. The rates from 1 March 2017 are shown in the table below. The fuel only advisory rates relate to company cars only. They can be applied as a tax-free maximum rate for employees claiming for petrol used on business journeys and for employees reimbursing their employers for the cost of petrol used for private journeys. HMRC will consider claims for a higher maximum rate, if it can be demonstrated that it is necessary for an employee to use a car with higher than average fuel costs.
165 - 169
32
35
170 - 174
33
36
175 - 179
34
180 - 184
35
37
185 - 189 36 190 and above 37
Vehicle
First
Thereafter
Car – fuel only advisory rates
10,000 miles
Engine capacity
Petrol
Diesel
LPG
Car/van
45p 24p 20p
25p 24p 20p
1400cc or less
11p 14p 14p 22p
9p 9p
7p 9p 9p
Motorcycle
1401cc to 1600cc 1601cc to 2000cc
Bicycle
11p 13p
Over 2000cc
14p
FOR ELECTRONIC USE ONLY
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