Budget 2014: Fuel benefit charges to increase

Charges for fuel provided by employers for private journeys have increased in the 2014 Budget, as well as the benefit charge for private ruse of light commercial vehicles.

Employees in receipt of company-funded fuel used privately will see their benefit-in-kind tax bills rise from April 6, 2014. The Chancellor has announced that the fuel benefit charge multiplier for company cars will increase from £21,100 in 2013/14 to £21,700 in 2014/15.

The van fuel benefit charge multiplier will increase from £564 to £581. There has been no word yet on tax for charging electric company vehicles at places of work and using the charge for private use.

The van benefit-in-kind tax charge will increase from £3,000 in 2013/14 to £3,090 in 2014/15. Employees with pay a percentage of this according to their income tax bracket.