Business and City: New rates for employee drivers

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The Independent Online
THERE ARE new rates for the fixed-profit car scheme, which is used to calculate the tax liability of employees given a mileage allowance for using their own cars, for the coming tax year.

For instance, employees with cars up to 1000cc will be allowed 26p per mile for miles up to 4,000, and 15p for higher mileage tax free. On the next band up to 1500cc payments of 32p and 18p are allowed. At the top of the scale, cars over 2000cc qualify for tax-free payments of 54p a mile up to 4,000 miles, and 30p on higher mileage.

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