Advisory Fuel Rates...

HMRC have issued advisory fuel rates for company car drivers. These take effect for all journeys undertaken from 1 August so employers should advise affected employees and update any expense forms as soon as possible.

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

• employers do not need a dispensation to use these rates
• employees driving company cars are not entitled to use them to claim a deduction if employers reimburse them at lower rates. Such claims should continue to be based on actual costs incurred.
• the advisory rates are not binding where an employer can demonstrate that the cost of business travel in company cars is higher than the guideline mileage rates.

If you would like to discuss your company car policy, please contact us.

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HMRC advisory fuel rates