HMRC updates its advisory rates for business miles undertaken in company cars quarterly. The latest figures are now available – what impact has the recent rise in fuel costs had?
Where employees undertake business-related mileage in a company owned car, HMRC allows the employer to repay them at a pre-approved rate per mile. As long as the amount paid doesn’t exceed this, no taxable benefit arises and there is no Class 1A NI charge. The rates are based on calculations made using actual pump price data, so naturally need to be reviewed periodically, quarterly in fact. They differ for petrol and diesel cars, as well as LPG fuel. When new rates are announced, the employer can continue to use the previous quarter’s rates for up to one month.
Kim Redwood-Lee says “The rates that apply from 1 December 2021 are now available and, as expected, these have all increased slightly due to the recent increase in fuel costs”.
The latest rates are as follows:
|Petrol and LPG|
About Oscar Fairchild: Oscar Fairchild (incorporating Redwood Clarke since 01.09.18) is an ACCA chartered and certified and AAT qualified accountancy, financial consultancy & bookkeeping practice with offices in The City of London, and Billericay, Essex. Offering a wide range of services including Self-Assessment Services, Annual Returns, VAT Returns, Credit Control, Payroll, Auto Enrolment Pension and Management Account services to high growth businesses and licensed London taxi drivers across London, Essex and Hertfordshire.