From 01 January, HRMC is increasing the company car advisory fuel rates for business car journeys.
The company car advisory fuel rates rise by 1p per mile in virtually every band, depending on engine size and fuel type.
HMRC says they better reflect the cost of fuel.
The advisory fuel rates are set to reimburse drivers for business miles undertaken in a company-provided business car.
Or employers require their staff to repay the cost of fuel used for private travel.
The advisory fuel rates are split into three engine bands. These are then further categorised into petrol, diesel and LPG. Hybrid vehicles, such as the Honda Civic Hybrid, are classed as petrol vehicles for the purposes of advisory fuel rates.
From 01 January 2008, the new company car advisory fuel rates are:
Engine size
1400cc or less: 11p (petrol); 11p (diesel); 7p (LPG)
1401cc to 2000cc: 13p (petrol); 11p (diesel); 8p (LPG)
Over 2000cc: 19p (petrol); 14p (diesel); 11p (LPG)
Further information
- If you want to know more about company car advisory fuel rates, then go to the Business Car Manager Tax section and read the story on company car advisory fuel rates. Rising cost of fuel has seen HMRC increase the company car advisory fuel rates