HMRC confirms new fuel rates for petrol, diesel | Tech News
HM Revenue and Customs (HMRC) has confirmed new advisory fuel rates for drivers of petrol, diesel, LPG and electric company vehicles from June 1.
The advisory fuel rates solely apply to drivers who use a company car, with the rates used to reimburse staff for business journey in these vehicles, or when staff need to repay the value of fuel used for non-public journey. HMRC conducts a review of these rates each quarter initially of March, June, September and December, that means the newest advisory fuel rates (AFRs) at the moment are in impact as of June 1 and can stay in place till the subsequent replace on September 1.
The reimbursement rates for petrol and diesel company vehicles have elevated from June to replicate rising world oil and pump costs following the outbreak of conflict within the Middle East.
According to the newest figures from the RAC, UK-wide petrol costs are at the moment 159.12p per litres, whereas diesel costs are 183.20p per litre.
Average petrol costs reached their highest stage in three and a half years between March and June, with the wholesale value of petrol in May surging to more than 5p above the earlier high of the Iran oil disaster.
AFR rates have elevated for petrol, diesel and liquified petroleum fuel (LPG) from June 1 to replicate hikes in fuel costs because the Iran conflict started.
But rates for electric automobiles stay unchanged on this present quarter, regardless of whether or not drivers use home or public chargers for their company car. Hybrid vehicles are handled as both petrol or diesel vehicles for AFRs.
In circumstances when staff should be reimbursed for company car business journey, HMRC stated if the mileage charge you pay is no greater than the AFRs for the engine dimension and fuel sort of the company car, there might be no taxable revenue and no Class 1A National Insurance to pay.
For staff who need to repay the price of fuel used for non-public journey, HMRC defined: “There will be no fuel benefit charge if you correctly record all private travel mileage and use the correct rate (or higher), to work out how much your employees must repay you for fuel used for private travel.
“You will not need to use the advisory rates where you can show that employees cover the full cost of private fuel by repaying at a lower mileage rate.”
Listed are the new advisory fuel rates for petrol, diesel, LPG and electric vehicles from June 1, as confirmed by HMRC:
Engines between 1401cc to 2000cc: 17p per mile (up from 14p)
Engines over 2000cc: 26p per mile (up from 22p)
Engines between 1601cc to 2000cc: 17p per mile (up from 13p)
Engines over 2000cc: 23p per mile (up from 18p)
Engines between 1401cc to 2000cc: 13p per mile (up from 12p)
Engines over 2000cc: 21p per mile (up from 19p)
Public charger: 15p per mile (unchanged)
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