Tax and travel

Measures affecting vehicle-related tax and benefits.

Mileage rates

Changes to the HMRC business mileage rates are announced from time to time. The fuel only advisory rates below relate to company cars only and apply from 1 March 2021.  

Engine Capacity Petrol Diesel LPG
1400cc or less 10p 9p 7p
1401 - 1600cc 12p 9p 8p
1601 - 2000cc 12p 11p 8p
Over 2000cc 18p 12p 12p

For those using their own vehicle the following mileage allowance payments apply.

Vehicle First 10,000 miles Thereafter
Car / Van 45p 25p
Motorcycle 24p 24p
Bicycle 20p 20p

Car benefits

2021/22:

CO2 emissions (g/km) Cars registered pre 6.4.20 Cars registered after 5.4.20
% of list price taxed % of list price taxed
0 1 1
1 - 50 electric range    
>130 2 1
70-129 5 4
40-69 8 7
30-39 12 11
<30 14 13
51-54 15 14
For every extra 5 +1 +1
160 and above 37 n/a
165 and above n/a 37

For fully diesel cars generally add a 4% supplement (unless the car is registered on or after 1 September 2017 and meets the Euro 6d emissions standard) but the maximum is still 37%. For emissions over 75g/km if the CO2figure does not end in a 5 or a 0 round down to the nearest 5 or 0.

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