May 27, 2010

Advisory Fuel Rates – Lease/Company Cars

HM Revenue & Customs has recently updated its advisory fuel rates for users of lease/company cars to reflect current petrol prices.  These rates apply to all journeys on or after 1 June 2010 until further notice and apply whether an employer reimburses an employee for business travel or an employee reimburses an employer for private travel. For one month from the date of change, employers may use either the previous or new current rates, as they choose. Employers may therefore make or require supplementary payments if they so wish, but are under no obligation to do either.

Engine size




1400cc or less 12p 11p 8p
1401cc to 2000cc 15p 11p 10p
Over 2000cc 21p 16p 14p

HMRC has advised that the rates in the table can also apply for VAT purposes, although employers are required to retain receipts in accordance with current legislation.

Full details are available via the attached link

If this is something which you would like to discuss further or you would like more information, please contact John Harling on 01353 644148 or 07768 446381.

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