Company car fuel advisory rates increased
HMRC's advisory fuel only mileage rates are increased from 1 December 2009.
The new rates are as follows (previous rates in brackets):
| Engine size | Petrol | Diesel | LPG |
|---|---|---|---|
| 1400cc or less | 11p (10p) | 11p (10p) | 7p (7p) |
| 1401 - 2000cc | 14p (12p) | 11p (10p) | 8p (8p) |
| Over 2000cc | 20p (18p) | 14p (13p) | 12p (12p) |
These rates apply where employers:
- reimburse employees who pay for fuel for business travel in their company cars - if the rate per mile paid by the employer is no higher than the advisory rate, there is no taxable profit and no class 1 NIC liability
- require employees to repay the cost of fuel used for private travel, where the employer pays for all fuel - if the rate per mile paid by the employee is at least the advisory rate, there is no fuel benefit liability
For more information please visit the HMRC website.
