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, for many years there have been 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 2020/21

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 2020/21


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