December advisory fuel rates increase by 1p per mile
HM Revenue and Customs (HMRC) has updated its advisory fuel rates for drivers using company cars over the next quarter.
From today (1 December 2016), the rate of reimbursement for petrol cars 1400cc and above will rise by one pence per mile. For diesel vehicles 1601cc to 2000cc the price will remain the same as the last quarter.
These rates apply when employers reimburse their employees for travel in their company cars, or require them to repay the cost of fuel used for private travel.
1.0 EcoBoost 140 ST-Line X 5dr
- 8k Miles p/a
Per Month, INC VAT
Initial Payment: £1,619.55
Fuel prices have been alternatively climbing and dropping since reaching a low of £1 per litre in January and the final rates for 2016 reflect this flux. It also comes off the back of the Autumn Statement, wherein the government froze fuel duty for the seventh year in succession – the longest freeze in fuel duty in 40 years.
Although the new rates start from 1 December, employers may choose to use the previous ones for one month from the date of change.