Autumn Budget 2021 – Motoring costs

Fuel prices

Fuel duty was frozen again (per the Chancellor – the 12th successive year of the freeze).

Vehicle Excise Duty (VED)

VED (Road Tax) for cars, vans and motorcycles will increase in line with the Retail Price Index from 1 April 2022.  That for HGVs will be frozen for 2022-23.

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 remain un changes in the Budget and can be found here.
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 Spring Budget documents confirm that the rate will remain at 2% for 2023-24 and 2024-25.
Van benefit
The van benefit in kind charge for vans emitting CO2 will increased from £3,490 to £3,600 for 2022-23.
The benefit for zero emission vans will remain at zero for 2022-23.

Fuel benefit

The base figure for calculating the benefit where private fuel is provided alongside a company car will increase with CPI to £25,300 (from £24,600) with effect from 6 April 2022.

The van fuel benefit charge will be £688 (increased from £669) for 2022-23.

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