Car benefit assessment & Mileage Allowances

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.
over 130g/km+1% for each extra 5g/km (135,140 etc.)
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).


Mileage Allowances

 2010/11 & 2009/10
Higher RateLower Rate
All cars40p25p
Business passengers5p5p
Higher Rate allowed up to 10,000 business miles.
Fuel-only allowances for company cars
From 1.6.2010 (From 1.12.2009)
Up to 1400cc12p (11p)11p (11p)8p (7p)
1401 – 2000cc15p (14p)11p (11p)10p (8p)
Over 2000cc21p (20p)16p (14p)14p (12p)
These figures may change more often than once a year.