Highlights from the broader tax news for the week ending 30 August 2023, including: HMRC service standards; advisory fuel rates; and a new HMRC technical manual.
HMRC service standards
The 22 August 2023 issue of Taxation Magazine contains an article by ICAEW’s Caroline Miskin on HMRC’s service standards. It explains that:
- ICAEW and other stakeholders want to work positively with HMRC to create an efficient and effective UK tax system.
- HMRC's communication of the closure of the self assessment helpline was misleading.
- The tax authority's post handling performance has improved in recent months.
- Budget cuts are having a serious impact on HMRC's service standards.
- Online services could help but they need to be properly funded and developed.
Read the article (note that the article is free to view on registration so anyone interested can access it).
Advisory fuel rates
HMRC has published its third quarterly advisory fuel rates for 2023. The rates are only for employees using a company car. The rates can be used when employers are reimbursing employees for business travel in their company cars or the employer needs the employee to pay for fuel used for private travel.
From 1 September 2023:
- the rate for fully electric vehicles increases by 1p to 10p per mile;
- the rate for petrol engines 1400cc-2000cc increases by 1p to 16p per mile;
- the rate for petrol engines over 2000cc increases by 2p to 25p per mile;
- the rate for LPG engines over 2000cc increases by 1p to 19p per mile;
- the rate for diesel engines over 2000cc increases by 1p to 19p per mile.
All other rates remain unchanged from the previous quarter.
Employers can use previous rates for up to one month after the date the new rates apply.
Tax free childcare manual
HMRC has published a new manual setting out its technical guidance on the law relating to tax-free childcare. Access the manual.
This guidance is created by the Tax Faculty, recognised internationally as a leading authority and source of expertise on taxation. The Faculty is the voice of tax for ICAEW, responsible for all submissions to the tax authorities. Join the Faculty for expert guidance and support enabling you to provide the best advice on tax to your clients or business.