Changes to advisory fuel rates
Changes have been announced to the company car advisory fuel rates with effect from 1 June 2010. As previously announced HMRC no longer provides one month’s notice of changes to the advisory fuel rates.
HMRC have said that for one month from the date of change, employers may use either the previous or new current rates, as they choose. Employers making or collecting payments at the superseded rate may use their judgement on whether to make or require a second payment in respect of the same period in order to apply the new rate from its effective date.
However, 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.
Engine size |
Petrol |
Diesel |
LPG |
1400cc or less |
12p |
11p |
8p |
1401cc to 2000cc |
15p |
11p |
10p |
Over 2000cc |
21p |
16p |
14p |
Petrol hybrid cars are treated as petrol cars for this purpose.
These figures can also be used for VAT purposes although businesses also need to retain fuel receipts.