Policy News Journal - 2016-17

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



1400cc or less

10p (11p)


1401cc to 2000cc

12p (13p)

8p (9p)

Over 2000cc

19p (20p)


Engine size


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

Back to Contents

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.


Page 178

of 588

Made with FlippingBook - Online magazine maker