Scrutton Bland Autumn Budget Report

6

Autumn 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. In the Autumn Budget the Chancellor announced that the diesel supplement will be increased from 3% to 4% from 6 April 2018, but 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 2018/19 is £23,400. 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 £3,350 for 2018/19. There is a further £633 taxable benefit if the employer provides fuel for private travel.

0 - 50

13

17

51 - 75

16

20

76 - 94

19

23

95 - 99

20

24

100 - 104

21

25

105 - 109

22

26

110 - 114

23

27

115 - 119

24

28

120 - 124

25

29

125 - 129

26

30

130 - 134

27

31

135 - 139

28

32

140 - 144

29

33

Van and fuel charge

Van £

Fuel £

Total £

145 - 149

30

34

Tax (20% taxpayer)

670.00

126.60

796.60

150 - 154

31

35

Tax (40% taxpayer)

1,340.00

253.20

1,593.20

155 - 159

32

36

Tax (45% taxpayer)

1,507.50

284.85

1,792.35

160 - 164

33

Employer's Class 1A NICs

462.30

87.35

549.65

165 - 169

34

The benefit charge for zero emission vans for 2018/19 is 20% of the standard benefit charge. There is no fuel benefit for such vans. Mileage rates

170 - 174

35

37

175 - 179

36

180 and above

37

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 2017.

First 10,000 miles

Car – fuel only advisory rates Engine capacity

Vehicle

Thereafter

Petrol

Diesel

LPG

Car/van

45p

25p

1400cc or less

11p

9p

7p

Motorcycle

24p

24p

1401cc to 1600cc

13p

9p

8p

Bicycle

20p

20p

1601cc to 2000cc

13p

11p

8p

Over 2000cc

21p

12p

13p

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