SE65825 - Tax treatment of local authority officials and employees: payments for using own car for work - centrally negotiated National Joint Council rates Fixed Profit Car Scheme

Important note:

Both the statutory rules and the administrative arrangements for dealing with mileage payments are replaced by the new statutory scheme for approved mileage allowance payments (AMAPs) that applies from 2002/03 onwards. Full guidance on the AMAP scheme is at SE31250 onwards.

Rules up to and including 2001/02

A large number of separate local authorities (and therefore separate employers) pay mileage allowances at the centrally negotiated National Joint Council rates. In order to avoid exactly the same Fixed profit Car Scheme profit tables being drawn up by many different tax offices, they are drawn up and agreed with the employers organisations each year by Employment Income Technical. These schemes have been in force for many years but are non-statutory. Any employee who objects to them has the right to be assessed on the statutory basis and claim a deduction in accordance with the statutory provisions (see SE65826 and SE30200onwards). In addition, no local authority paying at the centrally agreed rates is obliged to report mileage allowances under the Fixed Profit Car Scheme, despite the fact that profit tables are drawn up centrally. See final two paragraphs of SE65820.

The agreed profit tables are circulated in an appendix to a TS memo each year, normally in the March Noticeboard. The profit tables for local authority employees are calculated in the same way as for other fixed profit car schemes following the instructions in EP8000 onwards. See SE65826 for details of how to use the profit tables.