HMRC raises advisory fuel rates

HM Revenue and Customs (HMRC) has raised the advisory fuel rates to reflect rapidly increasing fuel prices at the pump.

Staff who drive vehicles for business use can now reclaim higher fuel costs from their employers following the Revenue’s bi-annual revision of fuel rates.

The rates for petrol cars have increased by between 9% and 15%, depending on the size of the vehicle’s engine. Meanwhile, diesel cars drivers can now reclaim between 18% and 21% more.

The new rates officially apply to all journeys made from 1 July 2008, although in light of the ‘unusual circumstances’ regarding escalating fuel prices, HMRC says it is happy for employers to implement them with immediate effect.

Recent data indicates that the average UK price for a litre of unleaded petrol is currently around 114p, while diesel is an average 126.4p per litre. That equates to an 18% rise in the cost of petrol since this time last year, and a massive 30% increase for diesel.

For more information on the new rates, please contact us.