New Advisory Fuel Rates from HMRC

The new Advisory Fuel Rates for reimbursing company car drivers (or for them repaying their private travel fuel costs) need to be adhered to by 1st October. The revised rates were introduced at the beginning of September and allowed old rates to be accepted for the first month of introduction.

The changes introduced increases in some engine categories to account for rises in fuel costs. Up to 1600cc capacity diesels remain unchanged, with 1ppm increase for both bands above 1601 cc.

There was only one change to petrol rates which was engine capacities of up to 1400cc vehicles having a 1ppm increase also.

Make sure you are using the new advised rates from the beginning of next month and adhere to HRMC recommendations. Over 50% of company car drivers are unaware of the rules for reclaiming business mileage, yet the penalties enforced by HMRC for non-compliance can be significant.