Fuel prices
Fuel duty was frozen again.
Vehicle Excise Duty (VED)
VED (Road Tax) for cars, vans, motorcycles and HGVs will increase in line with the Retail Price Index from 1 April 2021.
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.
The rates for 2021-22 to 2024-25 can be found here (there is no direct bookmark, so you have to scroll down – sorry!!).
Note that there was a 0% benefit rate for zero emission cars for 2020-21, increasing to 1% in 2021-22 and 2% in 2022-23. The Budget documents confirm that the rate will remain at 2% for 2023-24 and 2024-25.
Van benefit
The van benefit in kind charge will increased from £3,430 to £3,490 for 2020-21.
The benefit for zero emission vans will be reduced to zero from 6 April 2021.
Fuel benefit
The base figure for calculating the benefit where private fuel is provided alongside a company car will increase with CPI to £24,600 (from £24,500) with effect from 6 April 2021.
The van fuel benefit charge will be £669 (increased from £666) for 2021-22.
