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.