The Class 1A rate on company benefits and expenses reported on a P11D(b), returns to 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 remains at 13.8%, following the change introduced in November 2022.
The Class 1B rate on company benefits and expenses when reported on a PAYE Settlement agreement (PSA) also returns to 13.8%. (Previously a hybrid rate of 14.53% in the 2022/2023 tax year.)
The taxable benefit for use of a company van increases to £3,960 per year. (Up from £3,600 in the 2022/2023 tax year.) The taxable cost of the benefit is split between employees that use the van.
The car fuel benefit charge for the 2023/2024 tax year is £27,800. (Up from £25,300 for the 2022/2023 tax year.) This is multiplied by the ‘appropriate percentage’, based on the car's fuel type and CO2 emissions. Further information can be found on HMRC’s website.
The van fuel benefit charge for the 2023/2024 tax year is £757. (Up from £688 for the 2022/2023 tax year.) This is also multiplied by the ‘appropriate percentage’, based on the car's fuel type and CO2 emissions. Further information can be found on HMRC’s website.
The actual official rate of interest for calculating a beneficial loan using the normal averaging calculation method, or employer-provided accommodation, increases to 2.25%. (Up from 2% for the 2022/2023 tax year.)
The advisory fuel rates, used when reimbursing personal mileage where fuel is provided by the employer, or reimbursing employees for business travel in their company cars. They're updated every three months. Please refer to HMRC’s guidance for the latest mileage rates.