Keeping an accurate record of your business mileage is critical, whether you are a sole trader, a business car manager, or a company driver. HMRC has a task force out to look through SME business mileage records – with punitive fines for mileage recording errors.
A business owner wants to know what the correct pence per mile they should be paying their employees for using private cars on business use. Editor Ralph Morton provides the answer
Rates apply to employees using a company car and can be used to either reimburse employees for business travel in their company cars or if employees need to repay the cost of fuel used for private travel. Changes see a slight reduction in AFR for diesel, between 1p and 2p per mile depending in engine size, while there is no change for petrol or electric vehicles.
The name for the payment rate – which is tax-free by the way – is called the Approved Mileage Allowance Payment (which you might see shortened to AMAP). It is there to cover not only the fuel costs, but the cost of business insurance, depreciation and wear and tear while your employee is using their private car on business.
Manifesto is the result of several months of work by the AFP’s Future Mobility Steering Committee which has been having wide-ranging discussions with members and other interested parties about developing original ideas in areas where it believes that the taxation of fleets and mobility needs changing or developing in order to create effective incentives, greater certainty and more fairness.
Due to soaring energy prices, October's price cap will see electricity in the home rise to 52p per kWh and the daily standing charge up to 46p. Some public chargers could increase to £1 per kWh, which would see the Tesla Model 3 standard range costing around 21p per mile to run.
The latest petrol and diesel prices are taken from the Department for Business, Energy and Industrial Strategy and the LPG (UK average) is from the Automobile Association website. 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.
Find out what fuel reimbursement rates to use for business mileage in a hybrid car using the HMRC Advisory Fuel Rates to avoid paying car fuel benefit tax
HMRC has finally released official business mileage rates for fully electric cars. This is known as the Advisory Electricity Rate or AER
If you are a business that supplies free fuel to your employees, then you need to use the new VAT fuel scale charge tables applicable from May 01
Applying VAT Fuel Scale Charges is a simple means of recovering the VAT on the private supply of fuel to employees with company cars
Advisory Fuel Rates - or AFRs - are a way of reimbursing mileage incurred in a company car without incurring fuel benefit tax
HMRC has announced the latest Advisory Fuel Rates for company cars. These can be used from September 2018 to avoid car fuel benefit tax
Approved Mileage Allowance Payments - or AMAPs - are the correct tax-free business mileage rates to be used for reimbursing business mileage undertaken in a private car
WITH the announcement that all petrol and diesel car sales will end by 2040, it raises the prospect of how the government will replace its current fuel duty tax take. As the automotive world moves to an electric only future, it will leave a large hole in the government’s finances: a £27 billion sized hole to be precise (source RAC [...]
HOME CHARGING for electric vehicles requires a simple installation close to where the car will be charged and a routine similar to charging a mobile phone as the process takes several hours – although technology is constantly advancing. Recently Alphabet announced Chargemaster as its official EV charging partner. The need for close proximity parking is likely to rule out most [...]
BUSINESS travel data specialist TMC is urging companies to respond to a new HMRC consultation document that questions whether flat rate expenses for mileage and fuel such as Approved Mileage Allowance Payments (AMAPs) are still appropriate. TMC, which captures and processes mileage and fuel expense data from over 100,000 UK and European drivers, says fleets should take this important opportunity [...]
INSTAVOLT has welcomed new fuel rules to make electric vehicle charging simpler and more accessible for all that should boost electric vehicle take-up. The firm, which is working to install more than 3,000 rapid chargers across the UK by 2020, says a better charging infrastructure is key to boosting electric vehicle (EV) adoption. Under the new Vehicle Technology and Aviation [...]
THE level of benefit in kind car tax you pay for receiving free fuel for your company car rises again for the 2017/18 tax year. For the tax year 2017/18 the fuel scale charge is £22,600. It makes deciding whether to take free fuel a more important decision than ever. Never having to pay for your fuel might sound ideal; but [...]
Getting your correct mileage entitlement Keith gets company car opt-out allowance of £375 per month, less 40% tax and NI, plus 12p per mile But approved the taxman's mileage allowance rate is 45ppm for first 10,000 miles business use in private car then 25ppm So he can claim tax relief on difference of 33ppm on first 10,000 miles (worth £1,424), then 13ppm [...]
WHAT is MAR and how does it differ from AMAPs? Good question. And all with plenty of acronyms thrown in too. So here goes with the difference between Mileage Allowance Relief (MAR) and Approved Mileage Allowance Payments (AMAPs). If you use your own car for business you should be aware of MAR to make sure you're not paying [...]
