Tax Issues - Reduction in Taxible Benefits
 Business
Mileage
The car benefit charge (35 per cent of list price) will
be reduced by
- one third, for business mileage between 2,500 and 17,999
miles a year
- two thirds, for business mileage of 18,000 or more a year
These discounts do not apply to 'second cars'. The car benefit
of 'second cars' will only be reduced if the employee's business
use of it is 18,000 miles or more a year, and then the discount
is one third.
Where two cars are made available to an employee at the same
time, the 'second car' is the one used least for business
travel by the employee.
If a car is only available for part of the year the mileage
limits of 2,500 and 18,000 are reduced proportionately.
A business journey is one which an employee is necessarily
obliged to make in the performance of his or her employment.
This means journeys which involve travel from one place of
work to another.
'Business mileage' does not normally include the journey
between an employee's home and work.
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