The rates that apply to fuel cost for company cars have changed as of 1 September 2015.
The new advisory fuel rates will only apply when:
- a company reimburses employees for business travel using their company car
- the employee themselves is required to repay the cost of fuel for private travel.
The new rates apply from 1 September 2015. The previous rates can be used for 1 month:
|Engine size||Petrol – amount per mile||LPG – amount per mile|
|1400cc or smaller||11p||7p|
|1401cc to 2000cc||14p||9p|
For diesel cars, the rates are:
|Engine size||Diesel – amount per mile|
|1600cc or less||9p|
|1601cc to 2000cc||11p|
Benefits in kind statistics released by HMRC show that for 2013/14 car benefit and car fuel benefit made up 60% of the total taxable value of all benefits in kind. HMRC attributes this to a higher average tax liability for these benefits. The second biggest chunk of the total is private medical and dental benefit, which is 23%.
The statistics also show that tax was paid on a total of 940,000 company cars in 2013/14