Tax & Accounting News

New advisory fuel rates

02/01/2008

HMRC has announced the new advisory fuel rates, effective from 1 January 2008 (previous rates in brackets):

Engine size..................Petrol............Diesel...........LPG

1400cc or less............11p (9p)........11p (9p)........7p (6p)

1401 - 2000cc...........13p (11p)........11p (9p).......8p (7p)

Over 2000cc.............19p (16p).......14p (12p)......11p (10p)

Advisory fuel rates are the guideline rates at which employers can reimburse employees for business travel in their company cars, or require employees to repay the cost of fuel used for private travel in company cars, without tax or NIC implications. HMRC will also accept these rates for VAT purposes, although employers will need to retain the necessary VAT receipts.

 

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