Latest news with #taxregulations
The Sun
03-06-2025
- Automotive
- The Sun
Major fuel change for petrol, diesel and electric drivers kicks in – are YOU impacted?
A NEW fuel rate update from HMRC has come into effect today – and while it may help some companies cut costs, it could mean less money back in drivers' pockets for business mileage. The updated Advisory Fuel Rates (AFRs) apply across the UK and affect those using company cars, including employees who claim back mileage for work journeys or reimburse their employer for personal use. 2 AFRs are reviewed and set quarterly by HM Revenue and Customs to reflect average fuel prices and typical consumption levels. They're intended to keep reimbursements fair and in line with tax regulations If employers pay no more than the official rate, there's no taxable benefit for the employee. However, anything above the AFR is treated as income and may be taxed. In this latest update, reimbursement rates for many petrol and diesel vehicles have been reduced. Petrol car drivers with engines between 1.4 litres and 2 litres will now receive 14p per mile, down from 15p. For petrol engines over 2 litres, the rate drops from 23p to 22p per mile. Diesel drivers with engines up to 1.6 litres will now receive 11p per mile instead of 12p. Other diesel rates remain unchanged. While these reductions may seem minor, they can have a noticeable impact over time. For example, a driver covering 10,000 business miles a year in a petrol car that now qualifies for 14p per mile will be reimbursed £100 less than under the previous rate. In that sense, the new rates may feel more like a cut in income than a cost saving. Electric car drivers won't see any change this time around. The reimbursement rate for electric vehicles remains at 7p per mile, which reflects their generally lower running costs. Though the rate may appear low compared to petrol and diesel, it aligns with current energy price trends and may encourage more businesses to consider switching to electric fleets as a long-term cost-saving strategy. These rates are based on data from the Department for Energy Security and Net Zero, the Office for National Statistics, and the Department for Transport. The aim is to ensure that reimbursement remains fair and realistic, keeping both businesses and employees from being left out of pocket or facing unexpected tax consequences. The RAC has reminded drivers and employers that staying aligned with AFRs is essential not just for fairness but for staying compliant with tax regulations. With the potential for even small changes to add up significantly over time, especially for high-mileage drivers, it's crucial to use the correct rates. HMRC will review these rates again in September, taking into account future shifts in fuel prices and electricity costs. Until then, businesses and drivers are being encouraged to double-check their current mileage claims and reimbursement practices to avoid financial shortfalls or tax issues. Advisory fuel rates from June 1, 2025 For petrol vehicles, those with engines up to 1.4 litres can now claim 12p per mile. Vehicles with engine sizes between 1.401 and 1.6 litres, as well as those between 1.601 and 2 litres, are both eligible for 14p per mile. For larger petrol engines over 2 litres, the rate is set at 22p per mile. When it comes to diesel vehicles, drivers with engines up to 1.6 litres can now claim 11p per mile. Those driving diesel cars between 1.601 and 2 litres will receive 13p per mile, while vehicles with engines over 2 litres are now reimbursed at 17p per mile. These rates apply from 1 June 2025 and are intended to cover fuel costs only, not wear and tear or other expenses. 2
Arabian Business
02-06-2025
- Business
- Arabian Business
Saudi Arabia tax fine waiver to end this month
Saudi Arabia has given taxpayers until the end of this month to make use of a waiver on tax fines. The Zakat, Tax and Customs Authority (ZATCA) has called on all taxpayers subject to tax regulations to take advantage of the cancellation of fines and exemption from financial penalties initiative, which ends on June 30, 2025. ZATCA clarified that the initiative includes exemptions from fines related to late registration across all tax systems, late payments, and the late filing of returns. Saudi tax fine waiver It also covers fines for correcting value-added tax (VAT) returns, violations identified during field inspections related to electronic invoicing, and other general provisions under the VAT system. To benefit from the initiative, ZATCA states taxpayers must be registered in the tax system, submit all required returns, and pay the full principal amount of the tax due. Taxpayers may also request to pay the due tax in instalments, provided the request is submitted during the initiative's validity period and all instalments are paid on time according to a payment plan approved by the authority. The initiative does not cover fines related to tax evasion or fines paid before the effective date of the initiative. ZATCA encourages taxpayers to consult the simplified guide available on its official website, which offers a detailed explanation of the initiative, including the types of fines covered, exemption conditions, instalment payment steps, and examples of applicable field violations. The authority urges all eligible taxpayers in Saudi Arabia to take advantage of the initiative before its deadline at the end of June and to reach out with inquiries via:
