New advisory fuel rates hit the road from March

HMRC has announced new fuel rates for company cars. They apply to all journeys on or after 1 March 2017 until further notice.

For one month from the date of change employers may use either the previous or new rates. They may therefore make or require supplementary payments but are under no obligation to do either.

Hybrid cars are treated as either petrol or diesel cars for this purpose.

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

Engine size                      Petrol    LPG              Engine size                      Diesel

1 400CC or less               11p        7p                1 600CC or less  ...