News

Employers may use previous figures for one month

New advisory fuel rates for company cars have been announced by HMRC.

The figures apply to all journeys on or after 1 December 2010 until further notice.

For one month from the date of change, employers may use either the previous or new current rates and may therefore make or require supplementary payments if they so wish, but are under no obligation to do either.

Petrol-hybrid cars are treated as petrol cars for this purpose.

The amounts can be used for VAT purposes, but employers will need to retain receipts.

Rates are as follows

Engine size 1400cc or less

Petrol  13p     Diesel  12p     LPG  9p

Engine size 1401cc to 2000cc

Petrol  15p     Diesel  12p     LPG  10p

Engine size > 2000cc

Petrol  21p     Diesel  15p     LPG  15p