HMRC have recently released the latest Advisory fuel rates that came into effect from 1 March 2019.
These rates apply to employees using company cars on business journeys.
There are a number of changes covering LPG and diesel engine vehicles.
Petrol
The advisory rate for petrol engine cars is unchanged
The 1400cc or less rate is 11p per mile
The 1401cc to 2000cc rate is 14p per mile
The over 2000cc rate is 21p per mile.
LPG
The 1400cc or less rate has decreased by 1p from 8p to 7p per mile
The 1401cc to 2000cc rate has decreased by 2p from 10p to 8p per mile
The over 2000cc rate has decreased by 2p from 15p to 13p per mile.
Diesel engine
The over 2000cc rate has decreased by 1p from 14p to 13p per mile.
HMRC have also confirmed that the Advisory Electricity Rate for fully electric cars remains at 4 pence per mile. Electricity is not a fuel for car fuel benefit purposes.
The link to the new rates is below for your information.
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 HMRC 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.
