Latest advisory rates bring welcome boost for EV owners
Employers can reimburse their staff for business travel in company cars. Until now, the rate for wholly electric cars has been fixed at 5p, but that will change from 1 December. What’s the full story?
Advisory fuel rates for company cars are published by HMRC on a quarterly basis. The benefit to using the rates is that there will be no benefit-in-kind charge to the employee. It's possible to use a higher rate, but you must show that the actual fuel cost per mile is greater than the advisory rates. HMRC has just published the advisory rates applicable from 1 December 2022, and these include a welcome announcement for employees using wholly electric vehicles (EVs). Going forward, the rate for EVs will be reviewed quarterly in the same way as those for petrol, diesel and LPG vehicles. The rate from 1 December will increase from 5p to 8p - a 60% jump reflecting the inflated price of energy. Note that hybrid cars do not qualify as EVs, so the appropriate petrol or diesel rate should be used instead.
Related Topics
-
Should you voluntarily payroll benefits in kind?
The window to sign up to voluntarily payroll non-mandatory benefits in kind for 2027/28 will open in November. Is it worth volunteering to pay HMRC earlier than required or should you wait until it becomes mandatory in 2028/29?
-
Wise tax statement errors could affect 4,000 customers
Around 4,000 UK customers of financial services provider Wise have been told that tax statements issued between 2021 and 2025 contained incorrect figures. The errors could have resulted in taxpayers paying too much or too little income tax and capital gains tax (CGT). What should affected customers check?
-
Could refinancing your property put mortgage interest relief at risk?
HMRC has changed its guidance on claiming tax relief for interest on loans used to replace capital withdrawn from a business. The Chartered Institute of Taxation (CIOT) has now challenged the revised guidance, warning that it creates uncertainty for landlords, sole traders and partnerships. Could your borrowing arrangements be affected?