Fixed Profit Car Scheme

This scheme allows car owners to claim a standard rate for business mileage. This is often a sensible alternative to having the car owned by the company and incurring tax and National Insurance liabilities on the benefit in kind assessed on a company car.

Previously there were various rates dependent upon the engine size of the car and for the first 4,000 miles and for the excess. However, there are now just two rates. One for the first 10,000 business miles in a year and the other for the excess over 10,000 miles per year.

The rates are as following:

Car Rates

2011/12 to 2015/16

2004/05 to 2010/11

for the first 10,000 miles

45p per mile

40p per mile

for the excess over 10,000 miles

25p per mile

25p per mile

 

Single Rate regardless of total miles

2006/07 to 2015/16

Motorcycle

24p per mile

Business Passengers

5p per mile

If you receive less than these rates from your employer, you can claim the difference as a tax deductible expense.

It is vital that full and accurate records of business journeys and the mileage are maintained so that each and every claim can be verified.

To find out how Handley Evans & Co can help you contact us

For information of users:
This material is published for the information of clients. It provides only an overview of the regulations in force at the date of publication, and no action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material can be accepted by the authors or the firm.