Changes for cars

News: January 2014

Changes for cars

Car fuel benefit charge

Employees and directors who are provided with a company car and who also receive some or all of their private fuel from their employers are subject to the fuel benefit charge – on an all or nothing basis. The benefit charge is determined by applying a set multiple to the appropriate percentage for the car, based on its CO2 emissions.

The car fuel benefit charge multiplier will increase from £21,100 to £21,700 with effect from 6 April 2014, notwithstanding the actual fall in fuel prices in the current tax year, so this is another attempt to stop employers providing any private use fuel.

Company car advisory fuel rates

Not part of the Autumn Statement, but you need to know about the new rates from 1 December 2013 which show a reduction in most situations as under with the previous rates in brackets where a change applies:

engine size petrol diesel LPG
1,400 cc or less 14p (15p) 9p (10p)
1,600 cc or less 12p
1,401cc to 2,000cc 16p (18p) 11p
1,601cc to 2,000cc 14p (15p)
over 2,000cc 24p (26p) 17p (18p) 16p