Advisory fuel rates change
The rates that apply to fuel cost for company cars have changed as of 1 September 2015.
The new advisory fuel rates will only apply when:
- a company reimburses employees for business travel using their company car
- the employee themselves is required to repay the cost of fuel for private travel.
The new rates apply from 1 September 2015. The previous rates can be used for 1 month:
|Petrol – amount per mile
|LPG – amount per mile
|1400cc or smaller
|1401cc to 2000cc
For diesel cars, the rates are:
|Diesel – amount per mile
|1600cc or less
|1601cc to 2000cc
Benefits in kind statistics released by HMRC show that for 2013/14 car benefit and car fuel benefit made up 60% of the total taxable value of all benefits in kind. HMRC attributes this to a higher average tax liability for these benefits. The second biggest chunk of the total is private medical and dental benefit, which is 23%.
The statistics also show that tax was paid on a total of 940,000 company cars in 2013/14.
Get in touch today to discuss benefits-in-kind.