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New company car fuel rates come into effect

02 March 2011
Issue: 4295 / Categories: News , Employees , Income Tax
Figures apply from 1 March 2011

As mooted in February, HMRC have announced new fuel rates for company cars, which apply to all journeys on or after 1 March 2011 until further notice.

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.

 

Engine size Petrol Diesel LPG
1400cc or less 14p 13p 10p
1401cc to 2000cc 16p 13p 12p
More than  2000cc 23p 16p 17p

 

Petrol hybrid cars are treated as petrol cars for this purpose.

The amounts can be used for VAT purposes, but employers will need to retain receipts.
 

Issue: 4295 / Categories: News , Employees , Income Tax
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