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TAX NEWS

Tax news in brief

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Published: 01 Dec 2021 Update History

Highlights from the broader tax news for the week ending 1 December, including: the latest fuel advisory rates and HMRC providing recipients of tax credits, child benefit or guardian allowances extra time to switch accounts.

Latest advisory fuel rates published and include the first ever increase for electric cars

HMRC has published the fourth quarterly advisory fuel rates for 2021. The rates are used by organisations in calculating reimbursements for fuel costs and business travel in company cars. The rate for electric vehicles has been 4p per mile since its introduction. For the first time, this rate has increased by 1 penny to 5p per mile. From 1 December, rates for petrol, diesel and LPG engines have been increased across the board. Petrol and diesel rates have increased by 1 penny with the exception of petrol engines larger than 2000cc which has increased to 22p up from 20p. LPG rates have increased by 2p for engines up to 2000cc, and by 3p to 15p for engines larger than 2000cc. Employers can use previous rates for up to one month after the date the new rates apply.

HMRC gives recipients of tax credits, child benefit or guardian allowances extra time to switch accounts

Around 13,000 recipients of tax credits, child benefit or guardian allowances have yet to update their bank account details with HMRC ahead of its ceasing payments into Post Office card accounts. HMRC had originally set a 30 November 2021 deadline for notifying the change, but has agreed a one-off extension to the contract with the Post Office to allow recipients of these benefits until 5 April 2022 to provide alternative account details to HMRC. Recipients of HMRC payments can use their personal tax account to provide alternative account details. Alternatively, those receiving child benefit can change their bank account details via gov.uk or by contacting the child benefit helpline on 0300 200 3100, whereas tax credits recipients can change their bank account details by contacting the tax credits helpline on 0345 300 3900. Read more

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