| COMPANY CARS Car fuel charges for 2002-03 The Treasury has announced the fuel scale charges used for assessing income tax and employers’ national insurance for free fuel provided for private use in company cars. From April 2002, the scale charges of taxable benefit for fuel provided for private motoring in company cars are these: | Cars having a recognised cylinder capacity | Petrol | Diesel | | 1400cc or less | £2,240 | £2,850 | | 1401cc to 2000cc | £2,850 | £2,850 | | More than 2000cc | £4,200 | £4,200 | | Cars not having a recognised cylinder capacity | £4,200 | The government has recently consulted on a possible new structure for the fuel scale charge from April 2003. Want to know more? When free fuel for private use is also provided to an employee who drives a car which attracts a company car benefit charge, a tax arises on that fuel: - The tax due is calculated according to a flat rate scale charges - levied in addition to the relevant car benefit charge.
- These scales are based on the cylinder capacity of the car and whether it runs on petrol or diesel.
- Scale charges apply automatically unless the employee is required to make good all the costs of the fuel provided for private use, including journeys between home and the permanent workplace.
- A full year's tax charge can only be avoided if the employee chooses to opt out of free fuel before the start of the tax year.
Visit the Inland Revenue web site for more details . . . www.inlandrevenue.gov.uk/cars/fuel_benefit.htm Posted 27 March 2002 |
