New fuel rates for company cars
The new rates apply to all journeys on or after 1st September 2012.
HMRC has recently announced new fuel rates for company cars. The new rates apply to all journeys on or after 1st September 2012, until further notice.
The rates relate to employees who have a company car, pay for the fuel and claim back the business mileage from their employer.
The amounts can be used for VAT, but employers will need to retain receipts from the employee in support of their VAT return.
1,400cc or less
1,401cc to 2,000cc
1,600cc or less
1,601cc to 2,000cc
Petrol hybrid cars are treated as petrol cars for this purpose.
Will the rates change if fuel prices go up or down?
The rates are to be reviewed every quarter. Any changes will apply at the beginning of each quarter – 1st March, 1st June, 1st September and 1st December.