The mileage allowance for those using their own cars for business travel will increase from 40p per mile to 45p per mile for the first 10,000 miles of business travel in a tax year from 6 April 2011. The rate for mileage above 10,000 miles remains at 25p per mile. In addition, the allowance for passenger payments at 5p per passenger per mile is to be extended to volunteers.

For employees with company cars who receive a car fuel benefit, the base cost to which the relevant benefit percentage is applied increases by £800 to £18,800 for 2011/12. As such, this will almost always outweigh the fuel cost savings to employees and fuel should only be provided in very limited circumstances.

In addition, from April 2013, the CO₂ emissions limits for company cars will be tightened yet further increasing the benefit in kind charges on all cars emitting more than 95g/km (increases have now been set out for each tax year until April 2014).