§ Dr. MarekTo ask the Chancellor of the Exchequer if he will give details of the method of computation of the fixed profit car scheme whereby the Inland Revenue calculates the maximum amount of non-taxable benefit employees may receive from their employers for using their cars on their employer's business.
§ Mr. LilleyUnder the fixed profit car scheme arrangements the Revenue calculates the taxable element of any mileage allowance payable by employers to employees using their own cars on business. The taxable amount is fixed by reference to mileage bands by deducting tax-free mileage rates for various car engine sizes from allowances paid by the employer.