6
Autumn Budget 2018
Tax and travel Car and fuel benefits
Appropriate percentage
CO
emissions (g/km)
2
Petrol %
Diesel %
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 diesel supplement increased to 4% from 6 April 2018. It is removed altogether for diesel cars which are certified to the Real Driving Emissions 2 (RDE2) standard. The car fuel benefit is calculated by applying the same percentages to the fuel benefit charge multiplier, which for 2019/20 is £24,100. 2020/21 sees the introduction of a new range of bands with appropriate percentages ranging from 2%-19% for ultra-low emission vehicles (ULEVs) emitting less than 75 g/km of CO 2 . Cars with emissions over this amount would see the appropriate percentage set at the lesser of: 20%, plus 1% for each 5 g/km by which emissions exceed 75 g/km; and 37%. 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 £3,430 for 2019/20. There is a further £655 taxable benefit if the employer provides fuel for private travel.
0 - 50
16
20
51 - 75
19
23
76 - 94
22
26
95 - 99
23
27
100 - 104
24
28
105 - 109
25
29
110 - 114
26
30
115 - 119
27
31
120 - 124
28
32
125 - 129
29
33
130 - 134
30
34
135 - 139
31
35
140 - 144
32
36
145 - 149
33
Van and fuel charge
Van £
Fuel £
Total £
150 - 154
34
Tax (20% taxpayer)
686.00
131.00
817.00
155 - 159
35
37
Tax (40% taxpayer)
1,372.00
262.00
1,634.00
160 - 164
36
Tax (45% taxpayer)
1,543.50
294.75
1,838.25
165 and above
37
Employer's Class 1A NICs
473.34
90.39
563.73
There is a benefit charge for zero emission vans but there is no fuel benefit for such vans.
Mileage rates
Changes to the HMRC business mileage rates are announced from time to time. The fuel only advisory rates below relate to company cars only and apply from 1 September 2018.
First 10,000 miles
Car – fuel only advisory rates Engine capacity
Vehicle
Thereafter
Petrol
Diesel
LPG
Car/van
45p
25p
1400cc or less
12p
10p
7p
Motorcycle
24p
24p
1401cc to 1600cc
15p
10p
9p
Bicycle
20p
20p
1601cc to 2000cc
15p
12p
9p
Over 2000cc
22p
13p
13p
FOR ELECTRONIC USE ONLY
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