HMRC announce new (lower) fuel advisory rates for 'company' cars
HM Revenue & Customs have released details of the amounts that employers may reimburse to employees provided with ‘company’ cars, for business travel. For journeys on or after 1 January 2009, the amounts payable per mile are as follows:
|
Engine size (cc) |
Petrol |
Diesel |
LPG |
|
1400 or less |
10p |
11p |
7p |
|
1401 to 2000 |
12p |
11p |
9p |
|
Over 2000 |
17p |
14p |
12p |
Any amounts paid up to the appropriate figures above will not be taxed.
These are only advisory rates; where employers can show that the costs exceed these amounts, it should be possible to pay the higher amount. Employers doing so can, however, expect to be asked to demonstrate why the costs are higher than the Revenue’s.
In the case of both petrol and diesel engines, the rates are lower than the previous amounts and reflect the lower costs of those fuels since the last review, in June 2008.
These figures will next be reviewed in June 2009.
