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Where Taxpayers and Advisers Meet
HMRC Tax Free Advisory Fuel Rates Increase from 1 March
01/03/2012, by Lee Sharpe, Tax News - Business Tax
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HM Revenue & Customs has announced revised tax-free advisory fuel rates for use from 1 March. These are the rates at which employers can reimburse their employees for the fuel cost of any business mileage undertaken in, say, company cars or the rate at which employees can reimburse their employers (if the employer pays for all fuel generally) on their non-business mileage so as to avoid any private fuel benefit in kind.

The new rates per mile are as follows:

Engine Size Petrol LPG
1400cc or less 15p 10p
1401cc to 2000cc 18p 12p
Over 2000cc 26p 18p

Diesel rates change on a difference engine capacity:

Engine Size Diesel
1600cc or less 13p
1601cc to 2000cc 15p
Over 2000cc 19p

It is only the diesel rates that have increased over the previous Quarter's rates. Although these rates are supposed to apply from 1 March, they make no allowance for the 3pence increase in fuel duty supposed to be implemented later this month.

About The Author

Lee is TaxationWeb's Articles & News Editor and writes for TaxationWeb. He is a Chartered Tax Adviser with experience of advising individuals and owner-managed businesses over a broad spectrum of tax matters.
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