HMRC reveals latest Advisory Fuel Rates
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HMRC have announced the new Advisory Fuel Rates, which are effective from 1st December and bring increases for some engine categories.
The new rates see 1p per mile increase for petrol engines of 1401cc to 2000cc and over 2000cc. All other rates stay the same. Below is a table that shows the latest rates, in brackets is the previous rate.
Note: Hybrid cars are treated as either petrol or diesel cars for this purpose.
These figures are used to determine how much your employees get in return for using their own vehicles with a pay and reclaim process. Organisations may find a figure that fits around all of the rates to minimise admin time but it could mean that you end up paying your drivers more money than they’ve actually used.
We recently carried out some research into pay and reclaim which explores how purchasing fuel via this way could have a significant impact on your businesses bottom line.To download a FREE copy of the white paper, click here.
Unlike pay and reclaim, a fuel card means that there’s no need to worry about overpaying your employees, as you end up paying only what your drivers use. There are also additional benefits like access to an online account, one consolidated monthly invoice and other additional services like Service, Maintenance and Repair (SMR).
Download here to read about our research findings and how pay and reclaim effecting your company’s fuel costs.