New advisory fuel rates and early implementation

HMRC have announced the new advisory fuel rates which strictly take effect for journeys undertaken on or after 1 July 2008.

They have however acknowledged that the recent fuel price increases which justify these increased rates have happened very rapidly and therefore stated that where employers are able to do so, HMRC is content for the new rates to be implemented immediately i.e. from 1 June 2008.

The new rates are as follows:

Engine size	Petrol	Diesel	LPG
1400cc or less	12p	13p	7p
1401cc to 2000cc	15p	13p	9p
Over 2000cc	21p	17p	13p

Petrol hybrid cars are treated as petrol cars for this purpose.

For HMRC’s full announcement, please see http://www.hmrc.gov.uk/cars/advisory_fuel_current.htm

Sharon Cooke 
June 2008