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Allowances that reduce tax
2018/19
2017/18
Married couples’/civil partners’
allowance (MCA) tax reduction
£869.50
£844.50
Available to people born before 6 April 1935. The age for MCA is that of the elder
spouse or civil partner. The loss of tax reduction is 10p for each £2 of income
above £28,900 (2017/18, £28,000) until £336 (2017/18, £326) is reached.
High income child beneit charge
2018/19
2017/18
Threshold
£50,000
£50,000
There is a tax charge of 1% of the child beneit received for each £100 that the
threshold is exceeded up to a maximum of 100%.
TAX-FREE MILEAGE ALLOWANCES
Cars and vans
First 10,000 business miles
45p
Thereafter
25p
Motorcycles
24p
Bicycles
20p
Business passenger
5p
For national insurance purposes: 45p for all business miles for cars and
vans.
VEHICLE AND FUEL BENEFITS IN KIND
The taxable beneits in kind (BIK) is calculated as a percentage of the
car’s UK list price. The percentage depends on the car’s CO2
emissions
in grams per kilometre (g/km). Diesel cars which are certiied to RDE2
standard are treated as petrol-fuelled.
Emissions
Petrol
Diesel
0 – 50g/km
13%
17%
51 – 75g/km
16%
20%
76 – 94g/km
19%
23%
Over 94g/km
add 1% for every 5g/km or part thereof
180g/km* and over
37% maximum
* Over 159g/km for diesel.
The list price is on the day before irst registration, including most accessories
and is reduced by any employee’s capital contribution (max £5,000) when the
car is irst made available.
Where the cost of all fuel for private use is borne by the employee, the fuel
beneit is nil. Otherwise, the fuel beneit is calculated by applying the car beneit
percentage (above) to £23,400 (2017/18, £22,600).
Vans where private use is more than home to work travel; £3,350 (2017/18,
£3,230) beneit and £633 (2017/18, £610) for private fuel. Payments by
employees for private use may reduce these BIK. Vans with zero emissions
have a beneit of £1,340 (2017/18, £646).