Advisory fuel rate change
HM Revenue & Customs (HMRC) has announced the new advisory fuel rates, which have been amended to reflect the drop in fuel prices over the last six months.
The new rate will apply to drivers who use their company cars to make business related journeys from 1st January 2009. Those who are eligible can expect to receive a reimbursement free of Tax and National Insurance Contributions (NICs).
These rates have been calculated in the table below:
|1400cc or less||10p||11p||7p|
|1401cc to 2000cc||12p||11p||9p|
Please note that petrol hybrid cars are treated as petrol cars for this purpose.
Similarly to the July 2008 rate change, HMRC has confirmed that the new rates can be implemented immediately where employers are able and ‘wish to do so’.
The rates are to be reviewed twice a year, and the next change is due on 1 July 2009.