HM Treasury have issued the following statement to enable payroll software and employers to prepare for the new tax year commencing 6th April 2021.
Statement 4th February 2021
Kemi Badenoch MP Exchequer Secretary (HM Treasury):
The van benefit charge and fuel benefit charges for cars and vans will be uprated by the Consumer Price Index from 6 April 2021. The uprate will take effect as follows:
- Van Benefit Charge will uprate from £3,490 to £3,500
- Car Fuel Benefit Charge multiplier will uprate from £24,500 to £24,600
- Van Fuel Benefit Charge will uprate from £666 to £669
This measure is being announced outside of the normal fiscal process to ensure employers and HMRC are given enough time to prepare for the uprate, ahead of the 2021-22 tax year.
The Government will lay the statutory instrument to uprate these charges before the House on 9th March 2021.
A tax information and impact note (TIIN) will be published at Budget 2021:
PAYadvice.UK 4/2/2021 updated 20/2/2021