Advisory Fuel Rates for Company Cars from 1 June 2010

May 27th 2010

HM Revenue & Customs has updated its advisory fuel rates for users of company cars to reflect current petrol prices.  These rates apply to all journeys on or after 1 June 2010 until further notice and apply whether an employer reimburses an employee for business travel or an employee reimburses an employer for private travel.

For one month from the date of change, employers may use either the previous or new current rates, as they choose. Employers may therefore make or require supplementary payments if they so wish, but are under no obligation to do either.

HMRC has advised that the rates in the table can also apply for VAT purposes, although employers are required to retain receipts in accordance with current legislation.

Full details are available via the attached link http://www.hmrc.gov.uk/cars/advisory_fuel_current.htm

If you have any queries regarding these or related matters please contact John Harling on 07768446381 or jharling@edftax.co.uk