Fixed Profit Car Scheme

Under the Fixed Profit Car Scheme (FPCS) the maximum tax free mileage allowances for employees using their own cars for business are as follows:

	2001/02		2000/01
	First 4,000 business miles	Business miles over 4,000	First 4,000 business miles	Business miles over 4,000
Engine Capacity
Up to 1000cc	40p	25p	28p	17p
1001cc - 1500cc	40p	25p	35p	20p
1500 - 2000cc	45p	25p	45p	25p
Over 2000cc	63p	36p	63p	36p
Flat rate	42.5p	25p	40p	22.5p

Notes

1. Payments in excess of FPCS rates – excess is taxable. Payments at less than FPCS rates - employees can claim tax relief for shortfall. Employees can also claim tax relief for some of their interest paid on a loan to buy a car used for business.



2. NICO use the FPCS mileage rates for up to 4,000 miles. If the employer's mileage rate is above these rates, there will be a NIC liability on the excess.