HMRC publishes new advisory fuel rates
Fleet managers are being reminded that advisory fuel rates for company cars were revised from the start of this month.
These new rates, reviewed by HM Revenues and Customs (HMRC) twice a year, apply to all journeys after 1 March until further notice to help employers reflect fuel prices more quickly.
For one month from the date of change, employers may use either the previous or new current rates as they choose. Employers can choose to make or require supplementary payments if they so wish.
The rates have been raised by between 1-2p depending on engine size. See the HMRC website for the exact rates.
Jakes de Kock, MD of The Fuelcard Company, welcomed the news: “The new advisory fuel rates, which could see many staff receive a little more towards fuel expenses from their employer each month, will hopefully make the current soaring fuel prices a bit easier to swallow.
“We will be interested to hear from companies on the ground about how this has helped them.
“This decision by the HMRC comes at a time when businesses are struggling with running costs and are stretched to the limit. Hopefully this will help relieve some of that burden.”
A review wasn’t expected until late May however HMRC dragged the change forward by three months due to the rise in average fuel pump prices.
HMRC will also consider changing the rates if fuel prices fluctuate by 5 per cent from the published rates when each review is made.
Employers can check any changes by referring to the HMRC website.
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