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
-
How much will you save with reduced scale charges?
HMRC has reduced the VAT fuel scale charge by nearly 6% for company-provided cars. When does the new reduced rate take effect and how do you make the calculations?
-
Avoid the trading allowance trap
In late 2024 you became self-employed. You’re now completing your tax return for 2024/25 and will claim the trading allowance instead of a tax deduction for business expenses. Could this impact your NI record and state pension entitlement?
-
Time off for fertility treatment?
A survey by Fertility Matters at Work has revealed that more than one-third of employees undergoing fertility treatment have resigned or are considering resigning because of the physical and emotional toll. Is there a right to time off for fertility treatment?
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.