HM Revenue & Customs has confirmed the new advisory fuel rates for company car drivers claiming back fuel for work business, valid from 1 March 2011 until further notice.
All bands are up by at least 1p per mile, with HMRC basing the new figures on average fuel prices of 128.9p per litre for petrol and 134.0p for diesel.
The rates had caused controversy as rapidly rising fuel prices since the last adjustment took effect on 1 December 2010 meant company car drivers were effectively subsidising their employers when driving on company business. HMRC took action under its ability to reassess if fuel prices fluctuate by more than 5% after sustained pressure from a number of areas, including car fleet association ACFO. The new figures are valid from 1 March, though through March both new and old rates are valid. HMRC will reassess the rates for 1 June, unless there is another significant fluctuation prior to that.
The Approved Mileage Allowance Rates paid to drivers using their own car for work business, rather than a company car, remain unchanged at 40p per mile for the first 10,000 miles and 25p per mile thereafter.
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