Individuals

Cars

The following rates are the maximum amount that can be exempted from tax and NICs for business miles travelled in the employee's own vehicle.

• Motor cars and vans Up to 10,000 business miles* 40p per mile - Over 10,000 business miles 25p per mile.
• Motor cycles 24p per mile
• Bicycles 20p per mile
  * For NICs purposes, only use the up to 10,000 miles rate for all business miles travelled in a privately owned car or van.

Additional Passenger Rate You can also pay up to 5p per mile free of tax and NICs for each employee who travels as a passenger on a business journey.
Company cars are a taxable benefit in kind on the employee. The benefit is calculated on a percentage of the list price of the car appropriate to the level of the car’s CO2 emissions, as follows:

• 15% of the list price of cars emitting up to the lower threshold of emissions of CO2 in grams per kilometre;
  Increased by one 1% per 5 g/km over the lower threshold; but Capped at 35% of the list price.
• The lower threshold for 2006-2007 is 140 g/km