posted 3 years ago

Government Cancels Fuel Duty Rise For 2014

Autumn Statement Confirms Cancellation Of Fuel Duty Rise

The Government has cancelled a fuel duty rise to ensure the rate remains static for the rest of the parliament. This 1.6 pence per-litre increase - which was due to kick-in on September 1st 2014 – is one of several that have been proposed in recent years, then cancelled (perhaps for political effect). As such, the rate will soon have been frozen for four-and-a-half years which will be the longest period for more than twenty years. The Government has claimed, therefore, that it is likely to have fallen by 14% in real terms throughout this parliament. As such, Chancellor George Osborne has argued that – in comparison to the previous administration's plans – his policies will have saved drivers £680 each between 2011 and 2015/16. Furthermore, a small business with a van should have saved £1,300 and a haulier could be £21,000 better off. The Government's Autumn Statement has also emphasised that it is committed to promoting more environmentally friendly fuels. So, it will continue to differentiate – until March 2024 - between the main rate of fuel duty and the rate for alternative fuels such as Liquefied Natural Gas and Compressed Natural Gas. Furthermore, the differential between the main rate and the Liquefied Petroleum Gas  rate will be reduced by 1 pence per-litre, every year until 2024.

Company Car Tax

The Government's Autumn Statement has confirmed that Company Car Tax will change too. As such, new rules will soon:

“Ensure individuals make payments for private use of a company car or van in the relevant tax year.”

“Ensure that where an employer leases a car to an employee, the benefit is taxed as a car benefit rather than as employment earnings.”

A spokesman for HM Revenue and Customs said: “In both cases legislation is being tidied up to keep pace with current practice. There are no practical implications for employers or employees.” The spokesperson concluded: ”Employers and employees should not have to do anything in practice that they are not already doing in terms of compliance.”

Furthermore: 

“Employees who are in receipt of company funded fuel used privately will see their benefit-in-kind tax bills rise from April 6th 2014.”

“The fuel benefit charge multiplier for company cars will increase from £21,100 in 2013/14, to £21,700 in 2014/15.”

“The van benefit-in-kind tax charge will increase from £3,000 in 2013/14, to £3,090 in 2014/15.”

“The van fuel benefit charge multiplier will increase from £564 to £581.”

 

Its about time the Government did something for the motorist. But they should tell us a correct fixed price of a litre of fuel... One week I paid £1.28 litre then the next day at same Petrol Station it was £1.33 How can justify that... its the petrol Stations that's ripping us off!!!!!

Its about time the Government went further than stopping fuel duty rises & started doing fuel duty reductions3060