The Chartered Institute of Payroll Professionals ……………………………………………………………Policy News Journal
Expenses, Benefits & Reward
Company Cars
Advisory Fuel Rates for Company Cars from 1 March 2016 26 February 2016
HMRC have issued details of the latest Advisory Fuel Rates for Company Cars.
For one month from the date of change, employers may use either the previous or new current rates, as they choose. Employers may therefore make or require supplementary payments if they so wish, but are under no obligation to do either.
The new rates are below (previous rate in brackets where there is a change):
Engine size
Petrol
LPG
1400cc or less
10p (11p)
7p
1401cc to 2000cc
12p (13p)
8p (9p)
Over 2000cc
19p (20p)
13p
Engine size
Diesel
1600cc or less
8p (9p)
1601cc to 2000cc
10p (11p)
Over 2000cc
11p (13p)
Hybrid cars are treated as either petrol or diesel cars for this purpose.
Follow this link for details on how the rates are calculated
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Company car users can update their details online 27 April 2016
Instead of phoning or writing to HMRC, your employees can update their company car details online through the check or update your company car tax online service in their Personal Tax Account.
HMRC’s latest Employer bulletin highlights that updating a company car is just one aspect of the Personal Tax Account, which individuals can use to view information about their income tax and tell HMRC online about changes that may affect the tax they pay.
If any of your employees have not yet used their account they can register in a few minutes.
There are now four YouTube videos available on GOV.UK which provide more information about each function available through the online service:
Check the information online to see the information HMRC has about your company car and car fuel benefits; Add a company car benefit to add company car benefit to your tax code for the first time; Remove a company car benefit to remove company car benefit from your tax code if you no longer have access to it; or Replace a company car benefit to update your company car benefit or car fuel benefit.
Making these changes online means that your employees don’t have to wait for HMRC to update their tax code.
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