Changes to advisory fuel rates
Some minor but necessary changes have been announced to the guidance provided at the time that revised company car advisory fuel rates were announced at the end of 2009.
From the change on 1 December 2009, the revised rates were intended to take effect from the specified date rather than one month later, allowing them to reflect fuel prices more quickly. HMRC have now confirmed that they will not penalise employers or employees if the old rates continue to be used for upto one month from the date on which they change. Thus, for one month from the date of each half yearly change, employers may use either the previous or new current rates, as they choose.
Employers should note that under the normal rules, employees are only able to avoid the car fuel benefit charge if the amount they repay in respect of private fuel at least equals the amounts based on the published rates.