| Frequently Asked Questions |
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| IS CAR FUEL A BENEFIT TO YOU? |
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| The cost of buying fuel for private miles: |
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| Your Private mileage per year |
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(A) ............................................................. |
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| The miles per gallon of your vehicle |
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(B) ............................................................. |
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| Gallons purchased per year |
(A ÷ B) |
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(C) ............................................................. |
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| Cost @ £4.10 per gallon |
(C x £4.10) |
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(D) ............................................................ |
| (i.e. 90p per litre) |
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Cost to employee per year is: |
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(D) ............................................................ |
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| The tax cost to you: |
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| Assessable benefit |
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(E) ............................................................. |
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| Petrol Vehicle |
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| CO2 Emission 140 |
£2,160 |
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| CO2 Emission 190 |
£3,600 |
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| CO2 Emission 240 |
£5,040 |
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| Diesel Vehicle |
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| CO2 Emission 140 |
£2,592 |
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| CO2 Emission 190 |
£4,032 |
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| CO2 Emission 240 |
£5,472 |
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| Rate of tax |
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(F) ............................................................. |
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| Basic Rate @ 22% |
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| Higher Rate @ 40% |
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Tax cost to you per year: |
(E x F) |
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(G) ............................................................ |
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| If (D) exceeds (G) it is beneficial to have car fuel benefit. |
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| If (G) exceeds (D) it is not beneficial to have car fuel benefit. |
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| Mileage Allowance Payments for 2002-03 onwards |
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| Kind of vehicle |
Rate |
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| Car or van |
40p per mile for the first 10,000 miles
25p per mile after that |
| Motor cycle |
24p per mile |
| Cycle |
20p per mile |
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| Passenger Payments |
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| Car or van only, per passenger |
5p per mile |
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| Advisory Fuel Rates |
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| For fuel only mileage rates for company cars. |
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| The rates apply where employers: |
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- reimburse employees for business travel in their company cars or
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- require employees to repay the cost of fuel used for private travel.
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Engine size |
Petrol
(all years) |
Diesel
(all years) |
LPG
(from 2004-05) |
1,400 cc or less |
10p |
9p |
7p |
1,401 - 2,000 cc |
12p |
9p |
8p |
Over 2,000 cc |
16p |
13p |
10p |
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