To reflect the changes in fuel prices,
HMRC have issued new advisory fuel rates
for employees driving employer provided
cars. These take effect for all journeys
undertaken from 1 July 2009 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 |
10p (10p) |
10p (11p) |
7p (7p) |
| 1401cc to 2000cc |
12p (12p) |
10p (11p) |
8p (9p) |
| Over 2000cc |
18p (17p) |
13p (14p) |
12p (12p) |
Employers may use the new rates prior
to 1 July if their systems allow. The
rates in brackets are those previously
applicable.
Other points to be aware of about the
advisory fuel rates:
- employers do not need a dispensation
to use these rates.
- employees driving employer provided
cars are not entitled to use them to
claim a deduction if employers reimburse
them at lower rates. Such claims should
be based on actual costs incurred.
- the advisory rates are not binding
where an employer can demonstrate that
the cost of business travel in employer
provided 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 car
policy, please contact us.
Internet link:
HMRC advisory fuel rates |
