Vat on fuel for company cars

HMRC have published the revised fuel rates for company car users.

These new rates will take effect from 1st July 2009 and will be effective until further notice, however HMRC have said that they are happy for the new rates to be implemented immediately should the employer wish to do so.

The new rates are as follows:

Engine size Petrol Diesel LPG
1400cc or less 10p 10p 7p
1400cc to 2000cc 12p 10p 8p
Over 2000 cc 18p 13p 12p

Petrol Hybrid cars are treated as petrol cars for this purpose.

Will the rate per mile figures change if fuel prices change?

HMRC have said that the rates will be reviewed twice a year. Any changes will take effect on 1 January and 1 July but will be published on the HMRC website about one month in advance.
HMRC will also consider changing the rates if fuel prices fluctuate by 5 per cent from the published rates when each review is made and we consider the price change will be sustained.
Employers should make themselves aware of any changes by referring to http://www.hmrc.gov.uk/cars/advisory_fuel_current.htm