For both of our two schemes, there are three different kinds of vehicle:
- cars and vans (note that car is defined more widely than for car benefit and includes invalid carriages)
- motor cycles
- bicycles.
There is more guidance on the meaning of these terms in EIM31230.
The maximum rates payable tax-free in respect of each kind of vehicle can be found at EIM31240.
The same rates are used for NICs except that there is only a single rate for cars and vans. The higher (up to 10,000 miles) rate is used irrespective of the number of business miles travelled by the employee.
Employee using more than one vehicle
Different vehicles of the same kind are not distinguished (so, for instance, it does not matter if an employee changes his or her car in a tax year).
Vehicles of different kinds are treated separately (business miles travelled in a car and on a motor cycle are not added together).
| Home | Previous | Next | Top | Menu |
