HMRC has announced changes to the advisory fuel rates for company cars.
The rates are to be used where employers either reimburse employees for business travel in their company cars, or require employees to repay the cost of fuel used for private travel.
The latest rates apply to all journeys made on or after 1 June 2014, until further notice, although for one month from the date of change, employers may use either the previous or the new current rates.
The rates are as follows.
- For cars with engine sizes of 1400cc or less, the rate for petrol is 14p, for diesel it is 12p, and for LPG it is 9p.
- For cars with engine sizes of 1401cc to 2000cc, the rate for petrol is 16p, for diesel it is 14p, and for LPG it is 11p.
- For cars with engine sizes over 2000cc, the rate for petrol is 24p, for diesel it is 17p, and for LPG it is 16p.
For hybrid cars, the rates for either petrol or diesel cars should be used.