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Allowances: Electric Vehicles

Volume 457: debated on Tuesday 6 March 2007

To ask the Chancellor of the Exchequer if he will consider making the advisory fuel rates for the private use of petrol hybrid company cars the same as those for the company use of those cars. (124683)

Company car drivers are entitled to tax relief for the actual cost of fuel used for business mileage, but to make life easier for all, HMRC sets advisory fuel rates which it will accept as, on average, reflecting fuel costs without giving rise to a tax or NICs liability. The same rates apply where an employee makes good the cost of any fuel he or she has used for private mileage.