The Class 1A rate on company benefits and expenses when reported on a P11D(b), returns to a rate of 13.8%. (Previously a hybrid rate of 14.53% in the 2022/2023 tax year).

The Class 1A rate on termination and sporting testimonial payments over £30,000 was changed in November 2022 to 13.8% which will remain in place throughout the 2023/2024 tax year too.

The Class 1B rate on company benefits and expenses when reported on a PAYE Settlement agreement (PSA) will also return to the standard rate of 13.8%. (Previously a hybrid rate of 14.53% in the 2022/2023 tax year.)

The taxable benefit for use of a company van will increase to £3,960 per year. The taxable cost of the benefit is divided by the number of employees that use the van. (Up from £3,600 in the 2022/2023 tax year.)

The car fuel benefit charge for the 2023/2024 tax year is £27,800. This is multiplied by the ‘appropriate percentage’, which is based on the fuel type of the car, and CO2 emissions. (Previously £25,300 for the 2022/2023 tax year.) Further information can be found on HMRC’s website.

The van fuel benefit charge for the 2023/2024 tax year is £757. Again, this is multiplied by the ‘appropriate percentage’, which is based on the fuel type of the car, and CO2 emissions. (Previously £688 for the 2022/2023 tax year.) Further information can be found on HMRC’s website.

The actual official rate of interest to be used when calculating a beneficial loan using the normal averaging calculation method, or employer-provided accommodation, increases to 2.25%. (Previously 2% for the 2022/2023 tax year.)

The advisory fuel rates, used for employees reimbursing personal mileage where fuel is provided by the employer, or reimbursing employees for business travel in their company cars, are updated every three months. Please refer to HMRC’s guidance for the updated mileage rates.