New Advisory Fuel Rates
Rates applying from 1 September 2015
HM Revenue & Customs have published new advisory fuel rates that apply from 1 September 2015. These are the rates employers can use to reimburse employees who pay to put fuel in their company cars when using them for business.
The relevant amount payable per mile is determined by fuel type and engine size and the new rates are set out below:
|1400cc or less||11p||9p||7p|
|1401cc to 2000cc||14p||11p||9p|
Hybrid cars are treated as either petrol or diesel cars when applying these rates.
Advisory fuel rates are intended to reflect actual average fuel costs and are updated quarterly. They can be used by employers who:
- reimburse employees for business travel in their company cars, or
- require employees to repay the cost of fuel used for private travel.
Using the rates means there is no charge to either income tax or NIC on the amounts paid to employees.
The new rates apply to all journeys undertaken on or after 1 September 2015 until further notice. For one month from the date of change, employers may use either the previous or the current rates.
Should you have any queries please do not hesitate to contact a member of the Barnes Roffe team.Talk to Barnes Roffe today