HMRC released new Advisory Fuel Rates, to be used from the start of June 2023, in which pence-per-mile petrol and electricity costs have not been changed, but diesel rates have.
The rates for the smallest and mid-sized diesel engines dropped 1p per mile, with the largest – over 2000c - dropping 2p. This change reflects the fall in diesel prices at the pump, which have gone from around 174p per litre at the start of the year, to 145p in June (compared to 151p to 143p for petrol over the same period). The Advisory Electric Rate remained at 9p per mile.
Petrol — rate per mile
LPG — rate per mile
1400cc or less
1401cc to 2000cc
Diesel — rate per mile
1600cc or less
1601cc to 2000cc
The rapid changes in the cost of fuel over the past year, plus inflation on other goods and business expenses, and the addition of electric charging into the mix, means pay and reclaim doesn’t get any easier.
This is especially true if a business runs a pay and reclaim system where employees buy fuel and expenses out of their own pocket, and claim them back at a later date. It can be hard to keep track of costs, keep control, manage administration and plan cashflow.
As result we’ve produced these handy infographics to ensure that all bases are covered, with factors you need to think about including:
How is the employee paying?
Are they using safe, secure methods for payment of fuel and expenses.
Where are the receipts?
It’s easy for receipts to get lost, and if they do, make it harder to accurately process pay and reclaim fuel and expenses.
Piles of admin?
Wading through expenses, checking accuracy of claims can take time.
Are they paying too much?
In a pay and reclaim scenario when items are bought first and claimed later, you have little control over the cost. It’s too late if they’ve already paid too much.
Reclaimed the right tax?
Ensuring that all claims, receipts and invoices are HMRC-compliant means you can claim back the right level of tax.
Confusing and complex home charging costs?
How do employees work out cost for business miles charged at home in an EV?
These issues can be controlled, managed and reported so you have simple, accurate processes for all purchases, and you can take the pain out of pay and reclaim, as our infographics explain: Download your copy here.