To reflect the
increases in fuel prices, HMRC have issued
new advisory fuel rates for company car drivers. These
take effect for all journeys undertaken from
1 January 2008 so employers wishing to use
the new rates should advise affected employees
and update any expense forms as soon as possible.
| Engine
size |
Petrol |
Diesel |
LPG |
| 1400cc or
less |
11p
(10p) |
11p
(10p) |
7p
(6p) |
| 1401cc – 2000cc |
13p
(13p) |
11p
(10p) |
8p
(8p) |
| Over 2000cc |
19p
(18p) |
14p
(13p) |
11p
(10p) |
Other points to be aware of about the advisory
fuel rates:
- employers do not need a dispensation to
use these rates
- employees driving company cars are not
entitled to use them to claim a deduction
if employers reimburse them at lower rates.
Such claims should continue to be based on
actual costs incurred.
- the advisory rates are not binding where
an employer can demonstrate that the cost
of business travel in company cars is higher
than the guideline mileage rates. The higher
cost would need to be agreed with HMRC under
a dispensation.
If you would like to discuss your company
car policy, please contact us.
Internet link:
Advisory
fuel rates |
