HMRC reviews the published advisory fuel rates every six months and the new rates are effective from 1 June 2010

Employers may choose to: implement the new rates immediately or use the old rate for up to one further month, and require employees to make supplementary payments if the new rates cannot be applied immediately, although there is no obligation to do so.

HMRC explains the way in which the rates are calculated. They are based on average fuel consumption for the different engine sizes, reduced by 10% to make the figures more realistic.

The advisory fuel rates are provided by HMRC for employers to apply where they reimburse employees for business travel in their company cars, or require employees to repay the cost of fuel used for private travel in company cars.

Further information: HMRC Fuel Rates