Updated Fuel Advisory Rates

HMRC has announced their updated fuel advisory rates for employees using company cars. The new rates apply from 1 March 2015 and cover all business journeys made by the employee from this date.   For one month, the employer may continue to use either the previous or the new rates. They may, therefore, make additional payments to their employees or be entitled to a refund from them – but are under no obligation to do either.

Hybrid cars are treated as either petrol or diesel (depending upon the engine type) for this purpose and electricity supplied does not count as a ‘fuel’ for mileage rates purposes.  The new rates can also be used for VAT purposes, but employers will need to retain receipts.

Full details of the new rates can be found on HMRC’s website by clicking here