HMRC announce reduced fuel rates
Reduced fuel mileage rates will now apply from the 1 February 2007. The circumstances in which the rates will be used are:
1. Reimburse employees for business travel in their company cars.(This would be the case where employees pay for all fuel and then claim for the fuel cost of the business related mileage from their employers), or
2. Require employees to repay the cost of fuel used for private travel. (This would be the case where employers pay for all fuel and require employees to repay the fuel cost of private mileage).
The following rates per mile should now be used to calculate the petrol/fuel cost of business or private motoring.
- Engine capacity up to 1400cc - Petrol 9p, Diesel 9p, LPG 6p.
- Engine capacity 1401 to 2000cc - Petrol 11p, Diesel 9p, LPG 7p.
- Engine capacity 2001 and over - Petrol 16p, Diesel 12p, LPG 10p.