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9
Pension scheme contributions
Employer contributions to a registered employer pension
scheme or your own personal pension policies are not liable for
tax or NICs.
Please be aware that while your employer can contribute to your
personal pension scheme, these contributions are combined
with your own for the purpose of measuring your total pension
input against the ‘annual allowance’. Further information is
provided in this guide.
Deductions for travel and subsistence
Site-based employees may be able to claim a deduction for
travel to and from the site at which they are working, plus
subsistence costs when they stay at or near the site.
Employees working away from their normal place of work
can claim a deduction for the cost of travel to and from their
temporary place of work, subject to a maximum period.
Approved business mileage allowances – own vehicle
Vehicle
First 10,000 miles Thereafter
Car/van
45p
25p
Motorcycle
24p
24p
Bicycle
20p
20p
Company cars
The company car continues to be an important part of the
remuneration package for many employees, despite the
increases in the taxable benefit rates over the last few years.
Employees and directors pay tax on the provision of the car
and on the provision of fuel by employers for private mileage.
Employers pay Class 1A NICs at 13.8% on the same amount.
This is payable by the 19 July following the end of the tax year.
The amount on which tax and Class 1A NICs are paid in respect
of a company car depends on a number of factors. Essentially,
the amount charged is calculated by multiplying the list price
of the car, including most accessories, by a percentage. The
percentage is set by reference to the rate at which the car emits
CO
2
– please see the table to the right.
Pooling your resources
Some employers find it convenient to have one or more cars
that are readily available for business use by a number of
employees. The cars are only available for genuine business
use and are not allocated to any one employee. Such cars are
usually known as pool cars. The definition of a pool car is very
restrictive, but if a car qualifies there is no tax or NIC liability.
CO
2
emissions
(g/km)
Appropriate percentage
Petrol
%
Diesel
%
0 - 50
7
10
51 - 75
11
14
76 - 94
15
18
95 – 99
16
19
100 – 104
17
20
105 – 109
18
21
110 – 114
19
22
115 – 119
20
23
120 – 124
21
24
125 – 129
22
25
130 – 134
23
26
135 – 139
24
27
140 – 144
25
28
145 – 149
26
29
150 – 154
27
30
155 – 159
28
31
160 – 164
29
32
165 – 169
30
33
170 – 174
31
34
175 – 179
32
35
180 – 184
33
36
185 – 189
34
37
190 – 194
35
195 – 199
36
200 and above
37
Car – fuel only advisory rates
Engine capacity
Petrol
Diesel
Gas
Up to 1400cc
10p
8p
7p
1401cc - 1600cc
12p
8p
1601cc to 2000cc
10p
Over 2000cc
19p
11p
13p
Rates from 1 March 2016 and are subject to change. Note the
advisory fuel rates are revised in March, June, September and
December. Please contact us for any updated rates.