Many employers and employees make use of the advisory fuel rates published by HM Revenue & Customs. The rates apply where the employer:
• reimburses employees for business travel in company cars where the employer does not provide fuel, or,
• requires employees to reimburse the cost of employer provided fuel used for private travel, so potentially avoiding a private fuel benefit charge.
The advisory fuel rates are also acceptable for VAT purposes providing VAT receipts for fuel purchases are retained.