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HMRC has responded to business concerns over ever-increasing fuel prices by confirming a rise in the advisory fuel rates companies can pay to reimburse drivers using company cars on work business.
The massive rises that have seen the cost of fuel increase by more than 25% in the past 12 months are causing increasing concern to the business car community, with more pain to follow, according to experts.
"HMRC is aware of the increasing costs of fuel and will be reviewing rates in May, and will announce rate changes on 1 June to take effect from 1 July," said a spokesperson. The one month warning was agreed last year to give businesses time to adjust.
ACFO is looking to meet with HMRC to discuss the situation. "A large number of ACFO members have contacted us and we had already requested urgent talks with HMRC," said ACFO chairman Julie Jenner. "Any increase in June and implemented in July will still be some significant time after the price has risen by enough to hit drivers in their pockets. I would like to see an urgent review of current AFRs carried out in advance of any changes we might see in July."
Jenner said fleets need to be increasingly aware of the impact rising fuel costs are having on their business.
The warning comes as analysts at finance firm Goldman Sachs predicted oil prices could hit $200 a barrel within two years from their current $120 level.
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