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?
-
Review how much VAT charged on sales?
A recent Tribunal case ruled that HMRC’s logic was flawed in dealing with a “what is the supply” challenge. Does this mean you should check that you are charging VAT correctly on your sales if there could be doubt about what you are selling?
-
Are buy-to-let companies worth the hype?
There’s no doubt that landlords have been on the receiving end of multiple tax hikes in recent years. So called “property experts” will tell you that the best tax-saving strategy is to operate through a company. Are they right?
-
Electronic VAT return
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.
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.