Taxpayers face an increase in their National Insurance contributions (NICs) and dividend tax rates from…
A new set of Advisory Fuel Rates for the next financial quarter are now in effect as of 1 September 2020. These rates apply to any employee who uses a company car.
The rates can be used in circumstances where you are reimbursing employees for business travel in their company car or in requiring employees to repay the cost of fuel used for private journeys. If you use these rates, you will not need to seek a dispensation to cover the payments.
The new rates are:
|Engine size||Petrol – amount per mile||LPG – amount per mile||Diesel – amount per mile|
|1400cc or less||10 pence||7 pence||8 pence|
|1401cc to 2000cc||12 pence||8 pence||10 pence|
|Over 2000cc||17 pence||12 pence||12 pence|
Please be aware that you can use the previous rates for up to one month from the date the new rates apply. Details of the previous fuel rates can be found by clicking here.
Hybrid cars are treated as either petrol or diesel cars for the purposes of Advisory Fuel Rates.
Meanwhile, the Advisory Electricity Rate for fully electric cars is four pence per mile, although electricity is not considered a fuel for car fuel benefit purposes.
Link: Advisory Fuel Rates