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COMPANY CARS
Pending a change to a system of taxing company cars based on carbon dioxide emissions in 2002/03, the effective rates of taxable benefit have been amended for the years 2001/02.
| Taxable Benefit |
Car under
4 years |
Car 4 years
or over |
| Standard taxable benefit |
35% |
26.25% |
| Business mileage 2,500 - 17,999 p.a. |
25% |
18.75% |
| Business mileage 18,000 and over |
15% |
11.25% |
Generally, second cars will be taxed on the standard 35 per cent benefit, with a reduction to 25 per cent if business travel in that car exceeds 17,999 miles a year.
CAR FUEL BENEFITS
Scale rates for 2000/2001 are:
| Engine size |
Petrol |
Diesel |
| |
£ |
£ |
| Up to 1400cc |
1,700 |
2,170 |
| 1401-2000cc |
2,170 |
2,170 |
| Over 2000cc |
3,200 |
3,200 |
FIXED PROFIT CAR SCHEME
The rates for the maximum tax free mileage allowances under the FPCS for 2000/2001 are as follows:
| |
Engine Capacity |
Alternative |
| |
Up to |
1001 cc to |
1501 cc to |
Over |
average |
| |
1000 cc |
1500 cc |
2000 cc |
2000 cc |
rate |
| Business mileage |
|
| First 4,000 miles |
28p |
35p |
45p |
63p |
40p |
| Over 4,000 miles |
17p |
20p |
25p |
36p |
22.5p |
VAT SCALE CHARGE - VAT DUE PER QUARTER PER CAR
VAT scale rates for 2000/2001 are as follows:
|
Petrol |
Diesel |
| |
£ p |
£ p |
| Up to 1400cc |
38.12 |
34.55 |
| 1401 - 2000cc |
48.40 |
34.55 |
| Over 2000cc |
71.19 |
43.93 |
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TAX TIP
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| Plan your business trips to ensure your mileage exceeds the thresholds to reduce your taxable benefit. |
Front Page | Budget Highlights | Business Tax | Capital Taxes | Duties | Income Tax | VAT | Company Cars
| Employee Share Schemes | National Insurance | Other Measures | How It Affects Me | Tax Calendar
Return to Spencer Fellows Budget Page
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