Latest News
New Advisory Fuel Rates
HMRC has released the new advisory fuel rates which take effect from 1 December 2009.
The rates can be used where employers:
- reimburse employees for business travel in their company cars (when fuel is not provided), or
- require employees to repay the cost of fuel used for private travel (when fuel is provided).
In the first instance if the rate paid per mile of business travel is no higher than the advisory rate for the particular engine size and fuel type of the car, HMRC will accept that there is no taxable profit and no Class 1 NICs liability.
In the second instance providing that all of the miles of private travel have been properly identified, HMRC will accept that there is no fuel benefit charge, and therefore no Class 1A NICs liability, where the employer uses the appropriate rate from the current table (or any higher rate) to work out the cost of fuel used for private travel that the employee must repay to the employer.
The new rates, effective 1 December 2009 are :
|
Engine size |
Petrol |
Diesel |
LPG |
|
1400cc or less |
11p |
11p |
7p |
|
1401cc - 2000 cc |
14p |
11p |
8p |
|
over 2000 cc |
20p |
14p |
12p |
These rates are based on fuel prices of : Unleaded 108.7p; Diesel 109.9p; LPG 53.3p