August fuel duty delay and business mileage rates

Story: Richard | Posted 26 June 2012 | In Budget 2012, Business Car Finance, Business Car Management, SME Advice, Tax

Tagged with: 3p fuel duty rise, Budget 2012, fuel duty, TMC

Breathe a sigh of relief...for the moment. Fuel duty rise postponed

Story: RICHARD DAVIES

Good news for hard-pressed small businesses. The Government has announced that the 3p per litre increase in fuel duty scheduled to come into effect in August will be postponed until January 2013.

The lost revenue, put at £500 million by the Treasury, would be paid for by better than expected savings from ‘departmental budgets’. For small businesses, there was a collective sigh of relief.

Phew!

Making the announcement to Tory cheers and Labour jeers, the Chancellor said that fuel duty would now be 10p per litre lower than it would have been under Labour plans. “We are on the side of working families and businesses and this will fuel our recovery at this very difficult economic time for the world,” he said.

But what about you? Are you making the most of your allowances? And does your business have expenses under control?

Are you using the correct business mileage rates?

If you use your own car on business, then the tax-free amount you can claim is via AMAPs: Business mileage rates for using a private car or van.
If you drive a company car, then the business mileage rates can be claimed using AFRs: New company car business mileage rates from June.

Is your business controlling fuel expenses?

But it’s not all about the correct business mileage rates and cost of fuel. Paul Jackson of TMC has a different angle on the delay and possible ramifications for SMEs with company cars.

“The 2% price rise delay pales into insignificance beside the unnecessary sums that many fleets pay out to drivers in excess fuel and mileage expenses,” commented Paul.