Advisory mileage rates for company cars

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HMRC routinely reviews the published advisory fuel rates every three months and the current rates, effective from 1 September 2011, are added to the Table below.  With the exception of one of the LPG rates, there are no changes to rates that applied from June 2011.

Employers may choose to:

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

 

 

HMRC documents the way in which the rates are calculated.  They are based on average fuel consumption for the different engine sizes, reduced by 15% to make the figures more realistic.  The fuel prices used are

• petrol – 134.6p per litre (611.7p per gallon)
• diesel – 139.0p per litre (632.1p per gallon)
•  LPG – 75.8p per litre (344.64p 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.

The latest rates are published immediately a change is announced.

Further information:

Company cars – advisory fuel rates from 1 September 2011

Tags: cars and fuel, company cars, mileage rate, Recent Payroll News, travel expenses

This entry was posted on Sunday, September 4th, 2011 at 09:40 and is filed under Mileage rates. 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.