December 1, 2009

Advisory Fuel Rates for Employer-Provided Cars from 1 December 2009

HMRC has published its updated advisory fuel rates to apply to journeys undertaken in employer-provided cars on or after 1st December 2009. The rates can be applied either in respect of the employer reimbursing the employee for business travel or the employee reimbursing the employer in respect of private travel.

Previously, a month’s notice has been given by HMRC of the amended rates to allow employers to update their systems; however, this has not been the case with the latest changes.

Therefore, where employers reimburse employees for business journeys, HMRC has advised that if employers need time to update their systems then they are not obliged to operate the new rates immediately as long as the new rates are not exceeded. However, HMRC has also warned that where the rates are used for the employees to repay the employer for private journeys the full published rates must be used to avoid incurring a fuel benefit charge. As a result, it may be necessary to seek additional payments from employees in certain cases.

Full details are available via the attached link:

If you have any queries, please contact John Harling on 07768 446381 or e-mail

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