BUDGET 2011: Key points
23 March 2011
Changes to fuel price duty, company car benefit-in-kind tax, Approved Mileage Allowance Payments, VED, National Insurance contributions and the tax on businesses giving free fuel are the main points from chancellor George Osborne's 2011 Budget that will impact upon business cars operators.
There's a 1p per litre reduction in the price of fuel from 6pm tonight, with a freezing of the fuel duty escalator on top, while 95g/km will become the new 10% company car tax band from 2013, though there was no mention of ending diesel's 3% penalty under the current system, as some had called for. The clarity is also only for an additional one year.
Vehicle Excise Duty will rise in line with inflation, while there's an £800 increase in the amount used to calculate the tax payable on free fuel for company cars, which now stands at £18,800. Van benefit, and van fuel benefit, were though frozen.
The proposed increase in National Insurance contributions has been confirmed, and the chancellor also increased the AMAP rate for drivers using their own car on company business, from 40p per mile to 45p for the first 10,000 miles, with the 25p rate remaining after that.
For all the budget news and reaction, go to BusinessCar's Budget microsite
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