Changes to Fuel Rates from 1 January 2008

A reminder that from 1 January 2008 the Revenue have published new mileage rates that company car users can use to calculate the fuel cost of running their vehicles for private purposes. If this private element is repaid to employers the employees will avoid the penal car fuel benefit charge.

The new rates are:

Engine size:

1400cc or less: petrol 11p, diesel 11p, LPG 7p.
1401cc to 2000cc: petrol 13p, diesel 11p, LPG 8p.
Over 2000cc: petrol 19p, diesel 14p, LPG 11p.

Employers can also use these rates to calculate the VAT input tax on fuel included in staff mileage claims - employers will need to retain fuel receipts from staff to prove the fuel was purchased. (Obviously it is unlikely that staff will have receipts that exactly match the fuel element on their claim forms. Receipts should cover the same time period and be sufficient to cover the VAT claimed.)

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