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Business fuel rate increased by up to 3p per mile from June…

HMRC has published new advisory fuel rates effective from June 1 for company car drivers.

The fuel reimbursement rates have been increased by up to 3p per mile to reflect record pump prices.

The increase in advisory fuel rates comes after the last change in March left employees short-changed within days of being published, having been set before pump prices reached a record high that month.

The new rates from June 1 for petrol company cars have all increased, with the advisory fuel rates for petrol vehicles up to 1.4L now 14p per mile, up from 13p per mile.

Petrol vehicles with an engine sized from 1.4L-2.0L increase by 2p per mile, from 15 to 17p per mile, and those over 2.0L have seen the biggest increase from 22p per mile to 25p per mile.

It is a similar story with diesel rates. The diesel rate for company cars with an engine size of more than 2.0L has been increased by 3p per mile, from 16 to 19p per mile, while the advisory fuel rates for diesel cars up to 1.6L increase from 11p per mile to 13p per mile.

The advisory fuel rates for diesel vehicles with an engine from 1.6L-2.0L have also increased by 3p per mile, from 13 to 16p per mile.

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