HM Revenue and Customs (HMRC) have revised the advisory fuel payment rates to be used without tax or NIC implications when employers reimburse employees for business travel in a company car or when employees are required to repay the cost of fuel used for private mileage in a company car. HMRC will also accept these rates for VAT purposes, although employers will need to retain the necessary VAT receipts.
The rates will apply to all journeys on or after 1 January 2008. For further information, see http://www.hmrc.gov.uk/cars/advisory_fuel_current.htm. |