New Company Car Advisory Fuel Rates from 1 September 2012

New company car advisory fuel rates have been published to take effect from 1 September.

Engine Size Petrol   LPG     
1400cc or smaller 15p 10p
1401cc to 2000cc           18p 12p
Over 2000cc 26p 17p
 

 Diesel

 
Engine Size    
1600cc or smaller  12p  
1601cc to 2000cc  15p  
Bigger than 2000cc  18p  

 

 

 

 

 

 

 

  • Please note that not all of the rates have been amended and care must be taken to apply the correct rate. 

These rates apply to all journeys on or after 1 September 2012 until further notice. For one month from the date of change, employers may use either the previous or new current rates, as they choose. Employers may therefore make or require supplementary payments if they so wish, but are under no obligation to do either.  These figures may also be used for VAT purposes.

Petrol hybrid cars are treated as petrol cars for this purpose.

Other points to be aware of about the advisory fuel rates:

• Employers do not need a dispensation to use these rates.

• Employees driving employer provided cars are not entitled to use these rates to claim tax relief if employers reimburse them at lower rates. Such claims should be based on the actual costs incurred.

• The advisory rates are not binding where an employer can demonstrate that the cost of business travel in employer provided cars is higher than the guideline mileage rates. The higher cost would need to be agreed with HMRC under a dispensation.

This is an extract of the detail, the link to the full detail, including earlier figures, is as follows: HMRC advisory fuel rates

If you would like to discuss your car policy, please call John Caithness on 01202 663620.