The new rates are below (previous rate in brackets where there is a change):
Engine size
Petrol
LPG
1400cc or less
10p
7p
1401cc to 2000cc
11p (12p)
8p
Over 2000cc
17p
12p
Engine size
Diesel
1600cc or less
8p
1601cc to 2000cc
10p
Over 2000cc
12p
Hybrid cars are treated as either petrol or diesel cars for this purpose.
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Van benefit charge and fuel benefit charges for cars and vans 2021-22 8 February 2021
The Government has confirmed that the van benefit charge and fuel benefit charges for cars and vans will be uprated by the Consumer Price Index (CPI), from 6 April 2021.
The uprate means that:
• The Van Benefit Charge will uprate from £3,490 to £3,500 • The Car Fuel Benefit Charge multiplier will uprate from £24,500 to £24,600 • The Van Fuel Benefit Charge will uprate from £666 to £669
The announcement has been made outside of the standard fiscal process to give both employers and HMRC sufficient time to prepare for the uprate, prior to tax year 2021-22.
As announced at Budget 2020, the government will legislate in the Finance Bill 2021 to reduce the van benefit charge to zero for vans that produce zero carbon emissions. The change will have effect on and after 6 April 2021.
It is important to note that the Government is yet to lay the statutory instrument to uprate these changes but will do so on 9 March 2021. A tax information and impact note will be published at Budget 2021, and will be found here from that date.
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Advisory fuel rates for company cars from 1 March 2021 25 February 2021
Company car advisory fuel rates that apply from 1 March 2021 have been published.
HMRC has issued details of the latest Advisory Fuel Rates (AFRs) for Company Cars. Rates are to be applied from 1 March 2021.
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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