Autumn Budget 2017 – Motoring Costs

Fuel prices

Fuel duty was frozen again.

Vehicle Excise Duty (VED)

VED (Road Tax) will increase in line with the Retail Price Index from 1 April 2018.

There will be a supplement for new diesel cars registered after 1 April 2018 that do not meed the Real Driving Emissions 2 (RDE2) standard.

Business mileage payments

HMRC sets an approved mileage allowance payment (AMAP) rate. This is the rate at which employers may reimburse business mileage tax-free.

The AMAP rate will remain at 45p for the first 10,000 miles per annum and 25p per mile for any excess.

Company Cars

Car benefit

 Car benefits are based on a percentage of the list price of the car.  The percentage depends on the CO2 emissions of the vehicle.
Rates through to 2020-21 were confirmed/announced in the Budget and can be found here.  It was also announced that the diesel supplement will increase from 3% to 4% from April 2018 for vehicles that do not meet the RDE2 standard.  Cars that do meed the RDE2 standard will have the diesel supplement removed.
The maximum charge will remain at 37%.
Van benefit
 The van benefit in kind charge will increased from £3,230 to £3,350 for 2018-9.

Fuel benefit

The base figure for calculating the benefit where private fuel is provided alongside a company car will increase to £23,400 (from £22,600) with effect from 6 April 2018.

The van fuel benefit charge multiplier will be £633 (increased from £610) for 2018-9.

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