HM Revenue and Customs have just published the rates applicable from 1 September 2011
The rates only apply where employers:
- reimburse employees for business travel in their company cars, or
- require employees to repay the cost of fuel used for private travel.
The rates do not apply in any other circumstances. In particular, employees driving company cars are not entitled to use them to calculate a deduction if employers reimburse them at lower rates. Such calculations should continue to be based on actual costs incurred.