Businesses face change to advisory fuel rates

From 01 August, HRMC has changed the advisory fuel rates for business car journeys.

The rates rise by up to 2p per mile, 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.

There are three engine bands. These are split into petrol, diesel and LPG. Hybrid vehicles, such as the Honda Civic Hybrid, are classed as petrol vehicles.

The new advisory rates, effective from 01 August 2007, are:

Engine size
1400cc or less: 10p (petrol); 10p (diesel); 6p (LPG)
1401cc to 2000cc: 13p (petrol); 10p (diesel); 8p (LPG)
Over 2000cc: 18p (petrol); 13p (diesel); 10p (LPG)

Further information

If you want to know more about fuel rates, then go to the Business Car Manager Law & Tax section and read the story here: www.businessmotoring.co.uk

30 November 1999

From 01 August, HRMC has changed the advisory fuel rates for business car journeys.

The rates rise by up to 2p per mile, 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.

There are three engine bands. These are split into petrol, diesel and LPG. Hybrid vehicles, such as the Honda Civic Hybrid, are classed as petrol vehicles.

The new advisory rates, effective from 01 August 2007, are:

Engine size

1400cc or less: 10p (petrol); 10p (diesel); 6p (LPG)

1401cc to 2000cc: 13p (petrol); 10p (diesel); 8p (LPG)

Over 2000cc: 18p (petrol); 13p (diesel); 10p (LPG)

Further information

If you want to know more about fuel rates, then go to the Business Car Manager Law & Tax section and read the story here: www.businessmotoring.co.uk

HMRC has increased the fuel mileage payment rates

Advisory Fuel Rates, HMRC fuel rates, HMRC revises fuel rates upwards

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Ralph Morton is an award-winning journalist and the founder of Business Car Manager (now renamed Business Motoring). Ralph writes extensively about the car and van leasing industry as well as wider fleet and company car issues. A former editor of What Car?, Ralph is a vastly experienced writer and editor and has been writing about the automotive sector for over 35 years.

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