News

HMRC have published new company car fuel advisory rates which will take effect from 1st june 2011

These rates will apply to journeys taken on or after 1st june 2011 until further notice (allowing HMRC to reflect changes in fuel prices rather more quickly).

Employers will be able to use the current or previous rates for one month following the date of change.

It is advisable that employers take care when applying the new rates as tsome bands have changed.

Other points to note are

1) Employers do not require a dispensation to apply these rates.

2) Employees who are reimbursed at rates lower than those published may not use the pr=ublished rates to claim tax relief. (they must base any such claims on actual costs incurred)

3) The advisorty rates are not binding on the employer and higher rates may be used if the employer can demonstrate that the actual costs of business travel in the car provided by the employer is higher than those published. This would have to be agreed with HMRC via a dispensation.

Engine Size                 Petrol           LPG

1400cc or less             15p              11p

1401cc to 2000cc         18p              13p

Over 2000cc                 26p              18p

Engine Size                 Diesel

1600 cc or less            12p

1601cc to 2000cc         15p

Over 2000cc                 18p