Post‑Easter Tax Thoughts: Fuel Duty, Mileage Rates and Winter Fuel Confusion

In this post‑Easter episode, Mark Morton shares his reflections on recent tax developments and policy decisions. From frustration with Making Tax Digital and fuel duty at the pump, to mileage rates that offer little real‑world help, Mark also highlights growing concerns around the recovery of winter fuel payments from pensioners and the risks of PAYE coding errors. A candid look at the increasingly baffling world of UK tax.

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Transcript

Hello everybody. It's Mark Morton here just after Easter. And another little podcast. I've just been having a quick look at what may have been happening over Easter in the world of tax. We'll leave aside the nonsense of MTD. I just can't frankly believe that as a profession, we have sleep, walked into a position where the smallest businesses in the country are having to pay. 

Additional software costs for no apparent reason as far as I can tell. I will predict this will be an HS two moment. MTD will not raise money. There was no justification in the background data. In terms of testing that it would raise any significant money. It's just a project which will not do what it said on the tin 10 years ago. 

But anyway, on that happy basis I just thought I would mention fuel prices sitting talking to family at the weekend as you do discussing tax policy on a Sunday afternoon. But we were talking about fuel prices and one of the things I was saying to my sister actually was that. When you look at the price at the pump, over 50 per litre is fuel duty. 

And then of course you have the retailer's price, but on top of both items is then VAT and we would be moaning the cost. And what I can't quite understand at the moment is, I understand the government can't fund everything, but the government could reduce the rate of VIT on fuel. Cut prices at the pump, not lose actually any money compared to 10 weeks ago, and make life easier for everybody. 

But also, keep a little bit of a rain on inflation. And I am a bit bamboozled as to. Why that hasn't been done currently. Saying that they won't increase the price of fuel in September. I'm not sure he is doing a lot for anybody. But anyway, that, that was a bit odd. But the thing that really struck me in attack sense was that just prior to Easter, there was a little announcement by the Chancellor that for the first time for many years, the 40 5:00 PM mile rate will be reviewed as if, again, that's somehow gonna help. 

As we all know. And just because the tax legal figure, let's say, goes up to 55, 60 p whatever the modern equivalent would be, doesn't mean that employers currently are gonna pay people that money. And second thing it would not go up before next tax year anyway. I would take a small bet on that. 

So again, there's no short term help. And of course if you're then saying actually my employee still only pays me 45 p. Therefore I'm due tax relief on the extra 15 p or whatever it may be. The revenue would then take three years and make it extremely difficult for you to get a repayment. So again, it seemed a bit of an odd statement in the context of the position we find ourselves in. 

To be somehow saying there we go. There'll be a bit more of a higher figure payable by employers. Interestingly the only employer I know commonly that pays above the published mileage rates on the standard rate, you're actually the NHS. There you go. Anyway the vital thing I've just read, which is what sparked me really to, just do a little podcast today. Again the craziness of our system the revenue, issuing a note about the recovery of winter fuel payment. 2 million pensioners expected to repay their 25 winter fuel payment. And of course, one of the things that the revenue are saying is, oh don't worry. 

We'll just code it out for you. Based on the revenue's lack of ability to get things right within a pay as you earn code, the idea that for 2 million pensioners you're gonna tweak the pay asyou earn code and it will be right is a bit bamboozling. Of course, what, what may well be going on, pay as you earn codes currently is coding out for last year. 

To recover last year's figure, but also then actually looking at the coming year and putting a current year estimate in. So it may well be that pensioners within their per you earn code or suffering in inverted, a double effect. How many of them will understand what is going on and how many of them will actually be right? 

Goodness only knows. The revenue are also trying to tell people to be aware of scams. 25,000 winter fuel payments, scam referrals. Quite amazing. And then the reference to self-assessment which again in its own right is a bit of a strange old system. But anyway coming back after Easter, the rather strange world of tax in which we exist, no doubt there will be more to come over the next few weeks. 

I will keep you up to date with, any strange occurrences we may come across. Okay, take care everybody.