HM Revenue and Customs (HMRC) has announced a change to advisory fuel rates, applicable only to company cars.
All the petrol rates have increased, ranging now from 15p for an engine size of 1,400 cubic centimetres (cc) or less and 26p for over 2,000 cc, while diesel rates are now between 12-18p.
The rates for diesel cars up to 1,600 cc have increased to 12p while the rates for 1,601 to 2,000 cc are now at 15p.
The new rates will apply to all journeys on or after 1 June 2011. For one month from the date of change, employers may use either the previous or new current rates, as they choose.
Employers may therefore make or require supplementary payments if they so wish but are under no obligation to do either.
The rates will now be reviewed four times a year. Any changes will take effect at the beginning of each calendar quarter, on 1 March, 1 June, 1 September and 1 December, and will be published on the HMRC website shortly before the date of change.
Employers should make themselves aware of any changes by referring to the HMRC website.
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