Back
to Business Factsheets
Company Cars
Advisory fuel rates for company cars from 1 January 2009
HM Revenue & Customs (HMRC) has announced new advisory fuel rates,
which apply to all journeys on or after 1 January 2009 until further
notice.
1400cc or less |
10p |
11p |
7p |
1401cc to 2000cc |
12p |
11p |
9p |
Over 2000cc |
17p |
14p |
12p |
Petrol hybrid cars are treated as petrol cars for this purpose.
These
rates are calculated from the fuel prices in the tables below:
|
Petrol |
up to 1400 |
48.8 |
43.9 |
93.1 |
423.3 |
9.6 |
10 |
Petrol |
1400-2000 |
40.0 |
36.0 |
93.1 |
423.3 |
11.8 |
12 |
|
Petrol |
over 2000 |
28.1 |
25.3 |
93.1 |
423.3 |
16.7 |
17 |
|
|
|
|
|
|
|
|
|
Diesel |
up to 2000 |
50.9 |
45.8 |
107.8 |
490.0 |
10.7 |
11 |
Diesel |
over 2000 |
38.7 |
34.8 |
107.8 |
490.0 |
14.1 |
14 |
|
|
|
|
|
|
|
|
|
LPG |
up to 1400 |
39.0 |
35.1 |
55.0 |
249.8 |
7.1 |
7 |
|
LPG |
1400-2000 |
32.0 |
28.8 |
55.0 |
249.8 |
8.7 |
9 |
LPG |
over 2000 |
22.5 |
20.3 |
55.0 |
249.8 |
12.3 |
12 |
Notes:
- Mean mpg (miles per gallon) - from manufacturers’ information,
weighted by annual sales to businesses (Fleet Audits, 2007).
- Applied mpg - adjusted downwards by 10 per cent to take account of
real driving conditions and lower fuel economy for older cars.
- For LPG, mpg is assumed to be 20 per cent lower than for petrol due
to lower volumetric energy density.
- Department for Business, Enterprise & Regulatory Reform's latest
petrol and diesel prices (25 November 2008), LPG from AA website (November
2008). Prices have been adjusted for the impending changes to fuel
duty and VAT.
Will the rate per mile figures change if fuel prices go up or down?
Rates are reviewed twice a year. Any changes will take effect on 1 January
and 1 July but will be published on the HMRC website about one month
in advance.
HMRC will also consider changing the rates if fuel prices fluctuate
by 5 per cent from the published rates when each review is made and it
considers that the price change will be sustained.
Employers should make themselves aware of any changes by referring to
the HMRC website in June and December each year.
VAT
The figures in the table will be accepted for VAT purposes though employers
will need to retain receipts in line with current legislation.
© Copyright JE Consulting 2009. All
rights reserved.
Top
