 March
2007
Advisory Fuel Rates for Company Cars
HMRC have announced new rates for journeys on or after
1 February 2007.
| Engine Size |
Petrol |
Diesel |
LPG |
| 1400cc or less |
9p (11p) |
9p (10p) |
6p (7p) |
| 1401cc to 2000cc |
11p (13p) |
9p (10p) |
7p (8p) |
| Over 2000cc |
16p (18p) |
12p (14p) |
10p (11p) |
As the announcement was made towards the end of January
HMRC have advised that where employers have practical
difficulties implementing the new lower rates they
can continue to use the older higher rates for a further
month, up until 28 February 2007. This means that they
won’t have to take account of the income tax,
NIC and VAT implications of paying allowances at the
higher rate. This delay is intended to allow time for
drivers and employers to adjust to the new rate.
The rates apply to the reimbursement of business fuel
to company car drivers but may also impact on the amount
of VAT that can be reclaimed on employee car mileage.
Please do get in touch if you need any help in implementing
the new rates.
Internet Link:
HMRC Advisory fuel rates
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