New Fuel Rates for Company Cars Effective June 1: What You Need to Know
Introducing New Fuel Rates for Company Cars: What You Need to Know
Exciting news for company car drivers across the country – new fuel rates will be introduced from June 1st, covering a wide range of vehicles including electric, diesel, hybrid, petrol, and LPG cars. To shed some light on these changes, we spoke to car expert Darren Miller from BigWantsYourCar.com to get the inside scoop on what this means for you.
Understanding Advisory Fuel Rates
Advisory Fuel Rates are a crucial aspect of managing company car expenses, providing a standardized framework for reimbursing employees for business travel or calculating repayments for private fuel use. These rates, reviewed quarterly by HMRC, help ensure compliance with tax regulations while keeping costs in check.
What to Expect from the New Rates
Effective from June 1st, the updated Advisory Fuel Rates bring some significant changes to the table. Petrol cars will now be subject to rates ranging from 14p to 26p per mile, while LPG cars will incur rates between 11p and 21p per mile. Diesel cars, categorized by engine size, will have rates ranging from 13p to 20p per mile.
Hybrid vehicles, despite their fuel efficiency and environmental benefits, will still fall under the petrol or diesel rates based on the vehicle’s fuel type and engine size. This ensures consistency and compliance with tax regulations while accommodating the rise of hybrid technology in corporate fleets.
The Transition to Electric Vehicles
One of the most significant changes in the new rates is the introduction of an advisory electric rate for fully electric cars, set at 8p per mile. While this marks a step in the right direction towards promoting eco-friendly transportation solutions, some drivers have expressed concerns about the adequacy of the current Advisory Electric Rate policy.
It’s clear that there is room for improvement in ensuring fair compensation for all drivers, regardless of the type of vehicle they drive. Employers and employees alike should adapt to these changes and incorporate electric rates into their reimbursement policies to encourage the use of sustainable transportation options.
Overall, the introduction of these new fuel rates for company cars brings both challenges and opportunities for drivers and employers alike. By staying informed and proactive in adjusting to these changes, we can all contribute to a greener and more cost-effective future for company car usage.