For tax year 2020-21 onwards, employers must remember the outcome of the case when preparing P11Ds. Companies may need to carry out reviews of the company vehicles that they provide, and should also consider the implications of the ruling of the case when purchasing any additional company vehicles.
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Advisory Fuel Rates for company cars from 1 September 2020 4 September 2020
Company car Advisory Fuel rates that apply from 1 September 2020 have been published.
HMRC has issued details of the latest Advisory Fuel Rates (AFRs) for Company Cars. Rates applied from 1 September 2020.
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
7p (6p)
1401cc to 2000cc
12p
8p
Over 2000cc
17p
12p (11p)
Engine size
Diesel
1600cc or less
8p
1601cc to 2000cc
10p (9p)
Over 2000cc
12p
Hybrid cars are treated as either petrol or diesel cars for this purpose.
The latest update to the guidance page also includes information on how rates are calculated where the mean miles per gallon (MPG) were produced using the New European Driving Cycle (NEDC) or the Worldwide Harmonized Light Vehicle Test (WLTP).
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Advisory Fuel rates for company cars from 1 December 2020 26 November 2020
Company car Advisory Fuel rates that apply from 1 December 2020 have been published.
HMRC has issued details of the latest Advisory Fuel Rates (AFRs) for Company Cars. Rates are to be applied from 1 December 2020.
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 Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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