New mileage rates for company cars

HMRC has updated its advisory fuel rates (AFRs) for company cars.  The new rates apply from 1 June, but employers can continue to use the old rates until 30 June. AFRs may be used to avoid potential tax charges that can arise where:

A director/employee puts fuel into a company car or van for private journeys e.g for travelling between home and work, and your business pays for this fuel.

An employee pays for the fuel used in their company car or van, and you pay them an allowance to cover business travel.

In both cases, where the reimbursement rate is made at the AFR, HMRC accepts no fuel scale tax charge arises on the director or employee.

See table below for new rates:

Engine Size	Petrol	Liquid Petroleum Gas	Diesel
1400cc or less	15p	10p	-
1600cc or less	-	-	12p
1401cc to 2000cc	17p	12p	-
1601cc to 2000cc	-	-	14p
Over 2000cc	25p	18p	18p

http://www.hmrc.gov.uk/cars/advisory_fuel_current.htm

For further information please contact us:

enquiries@wardwilliams.co.uk

01932 830664

www.wardwilliams.co.uk