HMRC have recently released the latest Advisory fuel rates that came into effect from 1 March 2018.
These rates apply to employees using company cars on business journeys.
There are a number of changes covering both petrol, LPG and diesel engine vehicles.
The over 2000cc rate is increased by 1p from 21p to 22p per mile.
The 1401cc to 2000cc rate is decreased by 1p from 9p to 8p per mile.
The over 2000cc rate is decreased by 1p from 14p to 13p per mile.
There are no changes to the advisory diesel rates.
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.