HMRC provides advisory fuel rates that allow company car users and employers to determine tax-efficient reimbursement amounts for business mileage without detailed expense tracking. These rates are calculated based on fuel costs and vehicle engine size, enabling compliant expense claims without individual journey records. The rates are updated quarterly to reflect fluctuations in fuel prices, ensuring they remain representative of actual costs incurred by drivers.
Source: HMRC (GOV.UK) – Read the original