The van benefit and fuel benefit data for automobiles is one of the important news for mid-December 2022. From 6 April 2023, the van fuel benefit charge and van benefit rate will increase. Sections of the Income Tax (Earnings and Pensions) Act 2003 will be amended by statutory instrument, as per HMRC, to increase the cash equivalent of fuel benefit levies for vehicles and vans based on the amount from the September 2022 Consumer Price Index.
According to HMRC, the annual uprating measures revealed in the Autumn Statement guarantee that the tax system will continue to support the viability of the public finances. According to the statement, they also ensure that people continue to pay a fair proportion of tax on valuable employment benefits. Before the 2023–2024 tax year, employers can make the necessary adjustments to their payroll systems, and tax codes will be revised as needed.
Beginning on 6 April 2023, the consumer price index will increase the van benefit tax and the fuel benefit charge for cars and vans. The flat-rate van benefit rate will increase to £3,960 from £3,600 in 2022/23. The multiplier for the vehicle fuel benefit will increase to £27,800 from £25,300, and the flat-rate van fuel benefit rate will increase to £757 from £688.
It will likely affect employers and employees who share business vans that can be used for personal travel or offer gasoline for personal miles in company vehicles. Since there has been no change in how people contact HMRC, the customer experience is anticipated to remain unchanged. These approaches are not expected to affect families’ formation, stability, or breakdown.
These fees are consistent with expectations and are increased annually. It is estimated that these individuals and families will have a slight cost hike due to the uprating under inflation. Customers impacted by these actions must be familiar with the annual fee increases to be prepared for the future.
References
HM Revenue & Customs. 2022. ‘Income Tax: Van Benefit Charge and Fuel Benefit Charges for Cars and Vans from 6 April 2023’, GOV.UK (GOV.UK): https://www.gov.uk/government/publications/van-benefit-charge-and-fuel-benefit-charges-for-cars-and-vans-from-6-april-2023/income-tax-van-benefit-charge-and-fuel-benefit-charges-for-cars-and-vans-from-6-april-2023#:~:text=Current%20law,fuel%20benefit%20at%20%C2%A3688
‘Tax News in Brief’. 2022. Icaew.com: https://www.icaew.com/insights/tax-news/2022/dec-2022/NiBs-6-12-2022
‘Van Benefit Charges – RossMartin.co.uk’. 2022. Rossmartin.co.uk: https://www.rossmartin.co.uk/employers/benefits-shares/1155-van-benefits
