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New advisory fuel rates for company cars have been announced by HMRC
They apply to all journeys on or after 1 January 2009, until further notice - but if employers so wish, they can implement the new figures immediately.
As the new rates are lower than the previous ones, however, firms may prefer to continue with the old figures until the end of this month.
|
Engine size |
Petrol |
Diesel |
LPG |
|
1400cc or less |
10p |
11p |
7p |
|
1401cc to 2000cc |
12p |
11p |
9p |
|
Over 2000cc |
17p |
14p |
12p |
Petrol-hybrid cars are treated as petrol cars for this purpose.
The rates will be reviewed twice a year; any changes will take effect on 1 January and 1 July.
HMRC will also consider changing the rates if fuel prices fluctuate by 5% from the published rates when each review is made.
The figures can be used for VAT purposes, although employers will need to retain receipts.
