Revised Advisory Fuel Rates 
Added : 6th June 2008
Herminder Sandhu
HMRC have announced an increase in the advisory rates for fuel that are to be used by employers to reimburse employees for business mileage in their company cars or for employees to reimburse the employer for private fuel. The new rates are to apply from 1 July 2008 in line with HMRC policy of revising the rates every 6 months. However HMRC have said that in view of the recent fuel price increases employers can use the new rates from 1 June 2008. [Please note that to negate the car fuel scale charge the whole cost of private fuel has to be made good to the employer in the tax year].
|
Engine size |
Petrol |
Diesel |
LPG |
|
1400cc or less |
12p |
13p |
7p |
|
1401cc to 2000cc |
15p |
13p |
9p |
|
Over 2000cc |
21p |
17p |
13p |
Herminder Sandhu at Regional Business Advisers Cooper Parry said, “it is essential to stick to these rates or ensure robust records are kept to support either not too much has been paid to an employee for business mileage, or not too little has been reimbursed to the employer for private fuel.”
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