HMRC Fuel Rate Change

HM Revenue & Customs (HMRC) has published their latest rates to calculate the monetary value of fuel used in a company car.

These are used by employers to calculate:

  • the amount to claim back from employees when the employer has met the costs of private mileage, or
  • the amount to reimburse employees for business mileage when they have met their fuel costs directly.

If employers reimburse business mileage according to HMRC's prescribed rates (being a guide for average fuel consumption) then these are not treated as earnings for tax and National Insurance (NI). For one month from the date of change, i.e. the month of March, HMRC has confirmed that employers can use either the old or new rates.

New rates

Journeys on or after 1 June 2011

Engine size Petrol Diesel LPG
1400cc or less 15p 12p 11p
1401 – 2000cc 18p 15p 13p
Over 2000cc 26p 18p 18p

Previous rates

Journeys on or after 1 March 2011

Engine size Petrol Diesel LPG
1400cc or less 14p 13p 10p
1401 – 2000cc 16p 13p 12p
Over 2000cc 23p 16p 17p

Journeys made from 1 December 2010 to 28 February 2011

Engine size Petrol Diesel LPG
1400cc or less 13p 12p 9p
1401 – 2000cc 15p 12p 10p
Over 2000cc 21p 15p 15p

Further guidance can be found on HMRC's website at: http://www.hmrc.gov.uk/cars/advisory_fuel_current.htm

For further information, please get in touch with your usual Mazars contact or:

Jon Claypole - Partner

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