Company Car Tax.

Tax-free mileage and tax relief.

A completely new system of Inland Revenue Authorised Mileage Rates (IRAMR) has been introduced with effect from April 2002. In addition, the new rates will also replace entirely the system of calculating tax relief for employees who use their own cars for company travel. Since April 2002, a flat rate of 40p per mile applies to the first 10,000 business miles per annum, irrespective of engine size, reducing to 25p per mile for business travel in excess of the first 10,000 miles.

Tax disc changes.

Lower rates of Vehicle Excise Duty (VED) have been introduced for cars, vans and motorcycles with lower co2 outputs.