Fuel allowance

 Fuel will be taxed on a figure of £18,000 multiplied by the percentage at which the company car itself is taxed. The new rules will mean that it will no longer be tax-efficient for most employees to receive free fuel from their employers.

Meanwhile the flat rate taxable benefit generated by providing private fuel in a company van available for private use is set to rise from £500 to £550.

With the taxation of company cars set to tighten further, employers would do well to review the cars in their fleets. Some firms may be able to take advantage of the 10% tax band, particularly in terms of supplying tax-efficient vehicles to young family members who are employed within the business, or as second cars provided to the family by reason of the parent’s job.