Tax news in brief

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.