Advisory Fuel Rates For Company Cars
New company car advisory fuel rates have been published which took effect from 1 March 2017. The guidance states: 'You can use the previous rates for up to one month from the date the new rates apply'. The rates only apply to employees using a company car.
The advisory fuel rates for journeys undertaken on or after 1 March 2017 are:
|1400cc or less||11p|
|1401cc - 2000cc||
|1600cc or less||9p|
|1601cc - 2000cc||11p|
|1400cc or less||7p|
|1401cc - 2000cc||9p|
Other points to be aware of about the advisory fuel rates:
- Employees driving employer provided cars are not entitled to use these rates to claim tax relief if employers reimburse them at lower rates. Such claims should be based on the actual costs incurred.
- The advisory rates are not binding where an employer can demonstrate that the cost of business travel in employer provided cars is higher than the guideline mileage rates. The higher cost would need to be agreed with HMRC.
If you would like to discuss your car policy, please contact us.
Internet link: GOV.UK AFR