|
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 |
