New advisory fuel rates for company cars

There are new rates for company cars that apply from 1 June 2008.

This is the rate that employees who have a company car, but pay for the fuel themselves rather than incur the additional fuel benefit.

    

These rates are reviewed every six months and are amended to reflect the change in pump prices.

No changes have been announced to the rate that employees can claim for use of their own car.

Despite the significant increase in fuel prices at the pump these authorised mileage rates have been unchanged since 2002, 40p per mile for up to 10,000 miles a year and 25p thereafter (a time when unleaded was 75p per litre and diesel 77p).

Both the AA and RAC quote running costs of a typical car (petrol or diesel) to be over 50p per mile.