 January
2008
Advisory Fuel Rates
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
|
