Green Taxes and the Environment

Since its introduction in 2003, the ‘fuel benefit multiplier’ has remained at £14,400. The multiplier is the amount by which the car’s emissions based benefit rate is multiplied to arrive at the amount liable to tax and (employer) national insurance contributions.

From 6 April 2008 the multiplier will be increased to £16,900, taking the maximum income tax payable when an employer pays for the fuel an employee or director uses for private travel, from £168 to just over £197 per month.

Two intended measures have been announced which affect Air Passenger Duty (APD):

	From 1 November 2008 duty will be payable at the standard rate on all ‘business class only’ flights (thus rising from £40 to £80 for non-EEA flights)
	From 1 November 2009 duty will be payable per flight, not per passenger, under a new aviation tax.

APD rates will remain frozen at their current rates for 2008/09. For EEA flights these are £20 (standard) and £10 (reduced). For non-EEA flights these are £80 (standard) and £40 (reduced).