New fuel rates for company cars

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.

Engine size

Petrol

LPG

1,400cc or less

15p

10p

1,401cc to 2,000cc

18p

12p

Over 2,000cc

26p

17p

 

Engine size

Diesel

1,600cc or less

12p

1,601cc to 2,000cc

15p

Over 2,000cc

18p

 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.