Business tax: Advisory fuel rates
HMRC announced an increase in some of the advisory fuel rates for company cars with effect from 1 June 2010. The fuel-only mileage rates are for use by employers who either reimburse employees for business travel in their company cars or require employees to repay the cost of fuel used for private travel. They are reviewed twice a year.
For one month from the date of change employers may use either the previous or new current rates as they choose. Employers may therefore make or require supplementary payments if they so wish but are under no obligation to do either ' HMRC said. Employees driving company cars are not entitled to use these rates to calculate a deduction if their employer reimburses them at lower rates HMRC guidance says. 'Such calculations should continue to...
