top of page
  • Farrell & Farrell

HMRC Company car advisory fuel rates from 1 March 2021

Please see the HMRC link below the company car fuel advisory rates to be used as a guidance on the reimbursement of employees for business fuel.


The advisory electricity rate for fully electric cars is 4p per mile. Electricity is not a fuel for car fuel benefit purposes.


The advisory fuel rates apply from 1 March 2021. The previous rates can be used for up to one month from the date the new rates apply.


The rates only apply in the following circumstances:

• reimburse employees for business travel in their company cars; or

• require employees to repay the cost of fuel used for private travel.


These rates cannot be used in any other circumstances. If the rates are used, it is not necessary to apply for a dispensation to cover the payments made.


When employees are reimbursed for business travel in their company cars, HMRC will accept there is no taxable profit and no Class 1A national Insurance to pay.



11 views0 comments

Recent Posts

See All

Tax Adviser Vacancy

#FarrellAndFarrell #crossbordertaxadvisors #crossborder #taxadvisors #uktaxadvisors #roitaxadvisors #accountantcountydown #accountantnearme #newryandmourne #qualifiedtaxadviser #wearehiring

UK: Interest rates will remain unchanged

The Bank of England has today confirmed that interest rates will remain unchanged at 5.25% as expected, despite a decrease in inflation.  The decision marks its fifth pause in a row, with the Monetary

EDIT: HMRC U-turn on plans to cut access to helplines

HMRC have just announced that further to feedback, they are now halting plans to restrict access to the self-assessment, VAT and PAYE helplines as announced only yesterday while they engage with stake

תגובות


bottom of page