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| HMRC relax introduction of new fuel rates |
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The new advisory fuel rates for company car drivers, which HMRC originally announced would be effective from 1 February 2007, were published at such short notice that they have now agreed a transitional period for employers to implement the necessary changes to their expense systems. Where employers have practical difficulties implementing the new lower rates they can continue to use the older higher rates for a further month, i.e. to 28 February 2007, without having to take account of the income tax, NIC and VAT implications of paying allowances at the higher rate. This will allow time for drivers and employers to adjust to the new rate. This treatment will extend to those employers with dispensations for fuel rates which are linked, usually by a formula, to advisory fuel rates. Employers can however use the new lower rate with effect from 1 February for employees with fuel cards who reimburse their employers for private fuel bought with a company fuel card. The new rates are as follows:
Link HMRC Company Cars - Advisory Fuel Rates for Company Cars from 1 February 2007
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About The Author  Sarah Laing Sarah is a Chartered Tax Adviser. She has been writing professionally since joining CCH Editions in 1998 as a Senior Technical Editor, contributing to a range of highly regarded publications including the British Tax Reporter, Taxes - The Weekly Tax News, the Red & Green legislation volumes, Hardman's, International Tax Agreements and many others. She became Publishing Manager for the tax and accounting portfolio in 2001 and later went on to help run CCH Seminars (including ABG Courses and Conferences). Sarah originally worked for the Inland Revenue in Newbury and Swindon Tax Offices, before moving out into practice in 1991. She has worked for both small and Big 5 firms. She now works as a freelance author providing technical writing services for the tax and accountancy profession. |
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Article Added Thursday, 08 February 2007 | 1617 Hits |
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