HMRC's advisory fuel only mileage rates
HMRC recently changed with effect from 1 March 2015 and the new rates are as follows:
1400 cc or less 11p 8p
1401 to 2000 cc 13p 10p
over 2000 cc 20p 14p
1600 cc or less 9p
1601 to 2000 cc 11p
over 2000 cc 14p
Important: Please ensure that your employee expense policy reflects these changes and that your employees, particularly those that receive a company car but no private fuel benefit, are aware of these changes. If the employees claim a mileage in excess of these rates it could inadvertantly trigger a fuel scale charge resulting in an unexpected tax and Class 1A NIC liability (and penalties) for the employer, which could be quite costly!
Office of Tax Simplification (OTS) report - update
Following the draft Finance Bill 2015, the Government has proposed the following key changes to the taxation of expenses and benefits:
If you would like to discuss the impact of any of the above updates, please contact us.