Based on the recent downturn in oil prices, last week the Government released new recommended fuel rates for any company cars within a company. They vary depending on engine size and they are as follows:
|Engine Size||New Rate|
|1400cc or less||
11p for petrol (previously 13p) and 8p for LPG (previously 9p)
|1401cc to 2000cc||
13p for petrol (previously 16p) and 10p for LPG (previously 11p)
|1600cc or less||9p for diesel (previously 11p)|
|1601cc to 2000cc||
11p for diesel (previously 13p)
|Over 2000cc||20p for petrol (previously 23p), 14p for LPG (previously 16p) and 14p for diesel (previously 16p)|
Points to note
These recommended rates will apply to all journeys after 1 March 2015. An employer may continue to use either the new or previous rates.
They only apply where an employer reimburses an employee for business related travel in a company car and also requires the employee to repay the cost of fuel used for private use.
If an employer feels that their cars are more or less efficient than these rates, there remains a flexibility for an employer to adjust the rates accordingly.