Extraction of Company Profits

Mileage Rates for Opticians using their own transport

The approved maximum tax and National Insurance fuel mileage allowances for Opticians using their own transport for business are as follows:-

These rates represent the maximum tax-free mileage allowances for employees using their own vehicles for business. Any excess is taxable. If the employee recieves less than the statutory rate, tax relief can be claimed on the difference.

Benefits in kind

If you operate through a limited company and have a company car, or if you provide any of your employees with a car, a liability for tax arises under the "Benefits in Kind" rules. Tax is charged on a scale according to the vehicle provided. The percentage of list price charged to tax will be graduated according to carbon dioxide emissions. The standard percentage will be 15% applying to all cars with CO2 emissions of up to 140g/km for 2007/08, with a 3% supplement for diesel cars. The percentage will increase in increments of 1% for every additional 5g/km of CO2 emitted over the above baseline figures, to a maximum of 35% (petrol or diesel).

Do you operate your practice through the medium of a limited company?

If so, Morris & Co are able to compare the advantage of owning your car yourself and charging your limited company "an authorised mileage rate" compared with running a company owned vehicle and paying tax on the resultant car benefit. We would be pleased to do a detailed review for you for a fixed fee.

Email us at specs@moco.co.uk