Businesses face company car fuel rate cut
The advisory fuel rates, paid on company car fuel used, have been reduced
The advisory fuel rates, paid on company car fuel used, have been reduced – by as much as 2p per mile.
HM Revenue and Customs (HMRC) says the reduction – applicable from 1 February – reflects average fuel costs.
The rates only apply where employers reimburse employees for business travel in their company cars.
Or where companies require staff to repay the cost of fuel used for private travel – for example when a business pays initially for all the driver’s fuel.
The advisory rates are intended to reduce administration and clarify ‘tax-free’ payments. If they are used there is no taxable profit and no Class 1 NIC liability.
The new advisory rates (previous rates in brackets) are as follows:
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