News: July 2011
Advisory fuel rates for company cars
Published guidelines are issued by HMRC with the aim being to save time for all concerned by setting out figures which they reckon can be used in the majority of cases.
They are only advisory, and can apply where the employer reimburses the employee for fuel for business travel in a company car or where the employer requires the employee to repay the cost of fuel for private travel in a company car.
They used to be reviewed every 6 months, but more frequently at HMRC’s consideration if fuel prices fluctuated by 5% from the current rate and that was likely to be sustained.
However, that arrangement has changed and the rate per mile is now simply reviewed four times a year instead – on 1 March, 1 June, 1 September and 1 December. The rates from 1 June 2011 are as follows:
|engine size||fuel cost per mile|
|to 1,400 cc||15p||12p||11p|
|1,401 to 2,000 cc||18p||15p||13p|
|over 2,000 cc||26p||18p||18p|