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Company cars - advisory fuel rates
HMRC has announced a change to the advisory fuel rates for company cars 
The new rates will be effective from 1 July 2008 and should be applied to all journeys made on or after this date. This change in rate falls in line with HMRC's new policy of reviewing the rates at least twice a year. In addition if fuel prices fluctuate by more than 5%, further rate changes will be considered.
Provided businesses are able to implement the changes, by concession, HMRC is allowing businesses to implement these changes from 1 June 2008.
Please find a comparison of the old and new rates.
| Engine Size | Petrol | Petrol | Diesel | Diesel | LPG | LPG |
|---|---|---|---|---|---|---|
| New rate - pence per mile | Old rate - pence per mile | New rate - pence per mile | Old rate - pence per mile | New rate - pence per mile | Old rate - pence per mile | |
| 1400cc or less | 12 | 11 | 13 | 11 | 7 | 7 |
| 1401cc-2000cc | 15 | 13 | 13 | 11 | 9 | 8 |
| Over 2000cc | 21 | 19 | 17 | 14 | 13 | 11 |
These rate changes will be published on the HMRC's website approximately 1 month in advance to allow business to prepare for any changes from 1 July 2008.
Please check HMRC's website for any future changes.
[02/06/08]