Budget 2018 – Motoring costs

Fuel prices

Fuel duty was frozen again.

Vehicle Excise Duty (VED)

VED (Road Tax) for cars, vans and motorcycles will increase in line with the Retail Price Index from 1 April 2019.  The rates for HGVs will be frozen for 2019-20.

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 in November 2017 and can be found here.
No further rates were announced in the Budget this year since the government will produce a report in the spring reviewing the impact of the Worldwide harmonised Light vehicles Test Procedure (WLTP).  WLTP are emissions tests that aim to provide a closer representation of ‘real-world’ fuel consumption and CO2 emissions.
Van benefit
 The van benefit in kind charge will increased from £3,350 to £3,430 for 2019-20.

Fuel benefit

The base figure for calculating the benefit where private fuel is provided alongside a company car will increase to £24,100 (from £23,400) with effect from 6 April 2019.

The van fuel benefit charge will be £655 (increased from £633) for 2019-20.

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