HMRC have announced new rates which apply from 1 March 2015:
| Engine size | Petrol | LPG |
|---|---|---|
| 1400cc or less | 11p | 8p |
| 1401cc to 2000cc | 13p | 10p |
| Over 2000cc | 20p | 14p |
| Engine size | Diesel |
|---|---|
| 1600cc or less | 9p |
| 1601cc to 2000cc | 11p |
| Over 2000cc | 14p |
Hybrid cars are treated as either petrol or diesel cars for this purpose.
The cost of an annual staff party is allowed as a deduction for tax purposes. However, the cost is only deductible if it relates to employees and their guests, which would include directors in the case of a company, but not sole traders and partners in the case of unincorporated organisations.
An employer may provide employees with a seasonal gift, such as a turkey, bottle of wine or a box of chocolates at Christmas. All of these gifts are considered to be trivial and as such are not taxable.
One cautionary regarding VAT and staff gifts is that VAT is chargeable by the employer when an employee receives gifts totalling more than £50 in a year.