New advisory fuel rates announced after first review
As from January 2008, HMRC plan to review advisory fuel rates twice a year, so that employers can calculate the true cost of expenses and benefits more accurately. Any changes which result from the reviews will take effect on 1 January or 1 July. This is in response to recent rises in the cost of fuel. HMRC will also consider changing rates in between the two biannual reviews if fuel prices fluctuate by 5% from the published rates when the last review was made, provided they consider the price change will be sustained.
Following the first review, HMRC have released new advisory fuel rates. These figures must be applied to all journeys taken on or after 1 July, but HMRC are also happy for employers to implement the new figures earlier where they wish and are able to do so.
Engine size |
Petrol |
Diesel |
LPG |
1400cc or less |
12p |
13p |
7p |
1401cc to 2000cc |
15p |
13p |
9p |
Over 2000cc |
21p |
17p |
13p |
Notes:
- Petrol hybrid cars are treated as petrol cars for this purpose.
- These figures will also be accepted by HMRC for VAT purposes.