Fleet News

No change for fixed profit car scheme rates

AUTHORISED mileage rates for employees who use their own cars for business travel will remain unchanged in 2000/01 tax year, the Inland Revenue has announced. The authorised rate for pedal cycles, introduced in the March 1999 Budget, will also remain unchanged at 12p a mile from April 6, 2000.

Meanwhile, an authorised tax-free mileage rate of 24p a mile for employees who use their own motorcycles for business will be introduced at the start of the new tax year. The Inland Revenue authorised mileage rates - known as the Fixed Profit Car Scheme - allow employers to pay tax-free mileage allowances to staff who use their own cars, pedal cycles and motorcycles on business up to the published figures.

In addition, under the Car Allowance Enhanced Reporting Scheme, employers can use the car mileage rates to calculate and report profit or excess expenditure on the motor mileage allowances they pay to their employees on an individual basis.

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