Policy News Journal - 2016-17

The Chartered Institute of Payroll Professionals ……………………………………………………………Policy News Journal

1401cc to 2000cc



Over 2000cc



Engine size


1600cc or less


1601cc to 2000cc

11p (10p)

Over 2000cc 13p (12p) 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 tax for ultra-low emission cars 30 August 2016

HM Treasury has published a consultation which seeks views on the design of bands for ultra-low emission cars from 2020-21 onwards.

Geographical extent – any regulatory changes that happen as a result of this consultation will apply to all four nations of the UK.

The consultation - Company car tax for ultra-low emission cars , seeks to explore how best to incentivise the cleanest cars into the next decade, a period during which rapid innovation will deliver significant changes in the way motor vehicles are powered.

Company car tax rates and bands, including for ultra-low emission cars (ULEVs) are already legislated for until 2019-20. This consultation seeks views on the design of bands for ULEVs from 2020-21 onwards.

If this consultation is relevant to you or your company, you can respond directly. Please send comments by 19 October 2016 by either email to RHMTETTAnswers@hmtreasury.gsi.gov.uk or by post to:

Company Car Tax Consultation Transport Branch Energy and Transport Tax Team HM Treasury 1 Horse Guards Road London SW1A 2HQ

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Advisory Fuel Rates for Company Cars from 1 December 2016 29 November 2016

HMRC has 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



1401cc to 2000cc

14p (13p)



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