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Company Cars – New advisory fuel rates from 1 June 2010

Thursday, June 3rd, 2010

HMRC reviews the published advisory fuel rates every six months and the new rates, effective from 1 June 2010, are added to the Table below. Employers may choose to:

implement the new rates immediately or use the old rate for up to one further month, and
require employees to make supplementary payments if the new rates cannot be applied immediately, although there is no obligation to do so.

Fuel	Period	Engine Size
Fuel	Period	1400cc or less	1401 to 2000cc	Over 2000cc
Petrol (pence per mile)	up to 31/12/08	12p	15p	21p
	from 1/1/09	10p	12p	17p
	from 1/7/09	10p	12p	18p
	from 1/12/09	11p	14p	20p
	from 1/6/10	12p	15p	21p
Diesel (pence per mile)	up to 31/12/08	13p	13p	17p
	from 1/1/09	11p	11p	14p
	from 1/7/09	10p	10p	13p
	from 1/12/09	11p	11p	14p
	from 1/6/10	11p	11p	16p
LPG (pence per mile)	up to 31/12/08	7p	9p	13p
	from 1/1/09	7p	9p	12p
	from 1/7/09	7p	8p	12p
	from 1/12/09	7p	8p	12p
	from 1/6/10	8p	10p	14p

HMRC documents the way in which the rates are calculated. They are based on average fuel consumption for the different engine sizes, reduced by 10% to make the figures more realistic. The fuel prices used are

petrol – 119.9p per litre (545.2p per gallon)
diesel – 121.9p per litre (554.3p per gallon)
LPG – 65.4 p per litre (297.3p per gallon).

By way of a reminder, the advisory fuel rates are provided by HMRC for employers to apply where they:

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.

Further information:

Company cars – advisory fuel rates from 1 June 2010

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This entry was posted on Thursday, June 3rd, 2010 at 09:00 and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

1 comment on “Company Cars – New advisory fuel rates from 1 June 2010”

Deborah Cumming says:
December 8th, 2010
12:41

I use a rate of .12p for everyone regardless of engine size and fuel type, is this still correct given the new payment level.

I currently use .40p for everyone who travels on company business in their own car; has this changed?

Regards

Deborah

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