Posted on 14 March 2017
HMRC have just released the latest Advisory fuel rates that come into effect from 1 March 2017.
These rates apply to employees using company cars on business journeys.
There has been a 1p per mile increase in respect of petrol engine cars over 2000cc; and a corresponding increase of 1p per mile in respect of LPG cars over 2000cc. The rates for diesel engine cars remain uinchanged
The link to the new rates is below for your information. Please note that, although the link refers to March 2016 it links through to the March 2017 rates.
It is important to ensure that employees are paid within the HMRC rates to avoid a tax charge arising. During an employer compliance Inspection one of the key checks made by HMRC relates to claims made relating to business travelled, both in company cars and employees own vehicles and make a significant amount of recoveries from employers in respect of excess rate payments.
If you would like any help in understanding how Smith Cooper can help you to minimise your risks of underpaid tax and NIC arising during HMRC compliance inspections, please contact our Employment Tax team.