Policy News Journal - 2014-15

Advisory Fuel Rates for Company Cars from 1 December 2014

2 December 2014

HMRC have published the new rates which apply from 1 December 2014. As before, they have confirmed that employers can use the previous rates for up to 1 month from the date the new rates apply.

The new rates are:

Engine size



1400cc or less



1401cc to 2000cc



Over 2000cc



Engine size


1600cc or less


1601cc to 2000cc


Over 2000cc


Hybrid cars are treated as either petrol or diesel cars for this purpose.

Follow this link for details on how the rates are calculated

Zero emission car changes

22 December 2014

HMRC have confirmed details for implementing the new zero emission company car bands from April 2015.

Legislation in the Finance Bill 2013 introduced two new appropriate percentage bands for zero emission company cars from 2015-16; cars emitting:

 0-50g of carbon dioxide per kilometre (with appropriate percentage set at 5 per cent)  51-75g CO² per km (with the appropriate percentage set at 9 per cent).

This change means that from 6 April 2015 the Fuel Type E on the P46 (Car) is no longer required. The paper version of the Form has been amended to remove this; however the e- filing specifications for the P46 (Car) do not yet reflect this change. For software packages which support P46 (Car) submissions HMRC request where possible that the use of Fuel Type E is prevented and that the Fuel Type selection is restricted to Type A or D only from 6 April 2015.

Company car drivers can report changes to HMRC online

12 February 2015

An online trial has been launched by HMRC allowing company car drivers to make changes to car and fuel benefits that will affect their tax codes.

CIPP Policy News Journal

08/04/2015, Page 144 of 521

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