June 2023

Please contact us if you have any questions. 

Advisory fuel rates for company cars

New company car advisory fuel rates have been published and took effect from 1 June 2023.

The guidance states: 'you can use the previous rates for up to one month from the date the new rates apply'. The rates only apply to employees using a company car.

The advisory fuel rates for journeys undertaken on or after 1 June 2023 are:

HMRC guidance states that the rates only apply when you either:

• reimburse employees for business travel in their company cars
• require employees to repay the cost of fuel used for private travel.

You must not use these rates in any other circumstances.

The Advisory Electricity Rate for fully electric cars is 9p per mile. Electricity is not a fuel for car fuel benefit purposes.

If you would like to discuss your company car policy, please contact us.

Don't miss out on a tax refund for work expenses, HMRC urges

HMRC is reminding employed workers they can claim a refund on work-related expenses on the GOV.UK website.

More than 800,000 taxpayers claimed refunds for work expenses during the 2021/22 tax year.

HMRC says that it is quick and easy to claim a tax refund directly on GOV.UK. This is the only way to guarantee receiving 100% of the repayment.

HMRC increases both late payment and the rate paid on repayments of tax

This follows the increase in the base rate to 4.5% from 4.25% on 11 May, the 12th  consecutive rise.

The late payment and repayment interest rates follow this rise and are applied to the main taxes and duties that HMRC currently charges and pays interest.

The late payment interest rate will increase by 0.25% to 7% from 31 May. This is the highest rate since the start of the financial crisis in November 2008.

Late payment interest is payable on late tax bills covering income tax, National Insurance contributions, capital gains tax, corporation tax pay and file, stamp duty land tax, stamp duty and stamp duty reserve tax. The corporation tax pay and file rate also increases to 7%.

Repayment interest will also be increased from the current 3.25% rate to 3.5%.

Corporation tax, self assessment interest rates relating to interest charged on underpaid quarterly instalment payments rose to 5.25% from 5% a week earlier on 22 May.

The number of people paying income tax at 40% or above

The number of people paying income tax at 40% or above will reach 7.8 million by 2027/28, according to research published by the Institute for Fiscal Studies (IFS).

This represents one in five taxpayers and one in seven of the adult population – a near-quadrupling of the share of adults paying higher rates since the early 1990s, the IFS said.

It stated that the six-year freeze to income tax allowances and thresholds which started in April last year is set to become the single biggest tax-raising measure since Geoffrey Howe doubled VAT in 1979.