Advisory Fuel Rates For Company Cars
New company car advisory fuel rates have been published to take effect from 1 March 2014. HMRC’s website states:‘These rates apply to all journeys on or after 1 March 2014 until further notice. 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.’ For More Information, Click Here Please note that not all of the rates have been amended, so care must be taken to apply the correct rate. Other points to be aware of about the advisory fuel rates: • Employers do not need a dispensation to use these rates. • Employees driving employer provided cars are not entitled to use these rates to claim tax relief if employers reimburse them at lower rates. Such claims should be based on the actual costs incurred. • The advisory rates are not binding where an employer can demonstrate that the cost of business travel in employer provided cars is higher than the guideline mileage rates. The higher cost would need to be agreed with HMRC under a dispensation. If you would like to discuss your car policy, please contact us.