Company Cars – Improved guidance on advisory mileage ratesWednesday, March 10th, 2010
In December 2009, HMRC changed the period of notice given to employers of the semi-annual adjustments to the advisory mileage rates for company cars. Previously any changes had been introduced from January and July each year and a month’s notice was given in advance in each case, allowing employers to introduce the new rates up to a month before their official implementation date.
That arrangement changed in December 2009 however, when new rates were announced for immediate implementation from 1 December 2009. If employers did not make the adjustments until, say, 1 January 2010, retrospective adjustments had to be made to any payments made in December.
Following discussions with employers’ organisations, HMRC has tempered its instructions somewhat and allows employers to introduce the new rates at any time up to one month after their official implementation date on 1 June and 1 December each year, without having to make any backdated adjustments. Employers are advised to visit the page on which the new rates are announced in late May and November each year in order to get advanced warning of any changes.
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