June 2007

NEW ADVISORY FUEL RATES

Rates to increase from 1 August

HMRC have announced that the advisory fuel rates for company cars will increase from 1 August 2007.

The new rates applying to all journeys on or after 1 August 2007 are (with existing rates in brackets):

Engine size

1,400cc or less: Petrol 10p (9p), Diesel 10p (9), LPG 6p (6p)

1,401cc to 2,000cc: Petrol 13p (11p), Diesel 10p (9p), LPG 8p (7p)

Over 2,000cc: Petrol 18p (16p), Diesel 13p (12p), LPG 10p (10p)

Advisory fuel rates are the guideline rates at which employers can 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, without tax or NIC implications.