HMRC has published its latest Advisory Fuel Rates, effective from 1 June 2018. The Advisory Fuel Rates apply when you reimburse employees for business travel in their company cars; or require them to repay the cost of fuel used for private travel. These rates must not be used in any other circumstances.
Where the rate per mile paid for business travel is no higher than the Advisory Fuel Rates then there is no taxable profit and no Class 1A National Insurance to pay.
The new rates apply from 1 June 2018, although the previous rates can be used for up to one month from the date the new rates apply.
The new rates reflect the upward trend in fuel prices and introduce the following three key changes:
• 1 pence per mile increase from 8ppm to 9ppm for LPG vehicles between 1,401cc and 2,000cc;
• 1 pence per mile increase from 13ppm to 14ppm for LPG vehicles above 2,000cc;
• 1 pence per mile increase from 9ppm to 10ppm for diesel cars with an engine size of 1,600cc or less.
All other rates are unchanged.
The full table can be found here.
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Email: info@aveyoflondon.co.uk
This guidance is designed to alert to an important issue of general application. It is not intended to be a definitive statement covering all aspects of the related legislation. It is only a brief summary and no action should be taken without consulting the detailed legislation or seeking professional advice.
No responsibility for any person acting or referring to act as a result of any material contained in this guidance can be accepted by AVEY of London.