Reimbursement for the business mileage is usually offered by paying an approved mileage rate which s known as Approved Mileage Allowance Payments - often abbreviated to AMAPs. If you make payments to employees above a certain amount, you’ll have to report them to HM Revenue and Customs (HMRC) and deduct and pay tax.
Tthe DVLA and HMRC has announced the application of the alternative fuel taxation discount to mild hybrids for both Vehicle Excise Duty (VED) and Benefit in Kind (BiK).
The new rates for all engine sizes and fuel type are effective from June 1.
Now could be an ideal time to review fleet policy to look at introducing a number of new, tax-efficient vehicles to choice lists for drivers to consider when we come out of lockdown.
During lockdown, many people face potential hardship and being able to avoid BiK could make a genuine difference.
Is it justifiable taxing people on a benefit when that benefit is not really available for use? That’s what is happening at the moment with company cars and vans that can’t be used except for essential travel.
Advisory Fuel Rates are a method of paying – or reimbursing – expenditure on fuel without incurring fuel benefit tax.
Advisory Fuel Rates apply when you either reimburse employees for business travel in their company cars or when you require employees to repay the cost of fuel used for private travel.
You should make sure you tell HM Revenue and Customs (HMRC) if your company vehicles are available for private use by directors or employees?
Nearly all company cars are leased and from the chairman to the travelling salesman the list of new cars available may incorporate restrictions on CO2 or safety ratings to help keep those leasing costs down.
If you drive a car that has been provided by your employer, and you can use that vehicle for personal transport outside of work, then it's seen as a taxable perk by HMRC.
Salary sacrifice is an agreement where an employee accepts a lower salary but in return receives a benefit from their employer.
Don't get caught out be not submitting the P46 form telling the HMRC about directors and employees company vehicles - it could result in a big fine. Here's the latest guide
HMRC calculates AFRs by using a combination of average fuel prices, a calculation of real-world mpgs achieved by engine size and fuel type to arrive at a pence per mile figure.
Many company car drivers aren’t recuperating their full fuel costs, which is reflected in a poll of fleet managers taken last month, that found three-quarters of respondents don’t think the new rates reflect the real cost of fuel.
IT appears that the government hasn’t quite thought through its proposals for changes to salary sacrifice - an area where HMRC feels there is both tax and NI leakage. ACFO also points out Corporate salary sacrifice arrangement were often better value than a private arrangement, particularly for low income employees, providing new car certainty, reduced running costs and better fuel [...]
Employer-provided company car facts Employer-provided car sector is responsible for around 217,000 new registrations each year Company cars are the dominant source of Ultra-Low Emission Vehicle registrations in the UK Purchasing power supports more than 37,000 UK jobs Tax plans could affect up to 650,000 people with salary sacrifice car or in 'cash or car' scheme THE BVRLA and a coalition [...]
Restricting business miles can save companies large sums Riding the low fuel price gravy train Restricting business mileage saves companies nearly £1M in a month; Controlled mileage programme bucks UK trend of more business diesel use; TMC customers enjoy double-whammy of savings with cheap fuel. COMPANY car operating businesses that resisted being drawn into clocking up more business [...]
Mileage rates have been cut by nearly a fifth COMPANY car mileage rates have been slashed by up to 18% as HMRC cut the tax allowance across all six of the petrol and diesel categories in response to continuing fuel price falls. Hardest hit by the rates, known as advisory fuel rates (AFR), are drivers of company cars [...]
Deloitte Tax Tips offer a stress free start to 2015 AS the January tax deadline approaches, leading international law firm, Deloitte, has published a quick crib sheet to help UK sole traders and SME companies. Patricia Mock, Deloitte tax director, says: “Many people only begin to think about filing a tax return as the new year starts. However, [...]
