New advisory fuel rates from 1 September 2011

Extract from HMRC's website: These rates apply to all journeys on or after 1 September 2011 until further notice. For one month from the date of change, employers may use either the previous or new current rates, as they choose. Employers may therefore make or require supplementary payments if they so wish, but are under no obligation to do either.

Petrol hybrid cars are treated as petrol cars for this purpose. The HMRC site explains that the rates are now to be reviewed four times a year. Any changes will take effect at the beginning of each calendar quarter – on 1 March, 1 June, 1 September and 1 December. Employers are encouraged to consult the HMRC website shortly before the date of change.

In view of the increased frequency of review, HMRC will no longer consider changing the rates if fuel prices fluctuate by 5% from the published rates on which the allowances are based.