HMRC Update: Advisory Fuel Rates
HMRC has updated their advisory fuel rates for company car drivers undertaking business journeys with effect from 1 December 2014.
The rates, determined by HMRC, represent the actual cost of fuel and are set out below*.
*Details for LPG engines are not shown as they have remained the same
Payments in excess of the HMRC rates may be subject to tax and national insurance, so using the right rate is important. Employers who use these rates to calculate private mileage refunds from employees should also update their records or risk a scale benefit charge arising.
For employers who use these rates in tandem with a car allowance for employee’s own car use - there may be opportunity to generate tax and NIC savings.
Dains are a specialist provider of employment taxes support and advice. If you would like to discuss these or any other employment tax issues please contact:
Samantha Davies |
07713 421899 |
|
Michelle Perry |
07528 970201 |
|
James Hunt |
07973 614944 |