HMRC has published advisory fuel rates, within which income tax and NICs may be disregarded, to operate from 1 September 2011.

These rates apply to all journeys on or after 1 September 2011 until further notice. For one month from the date of change, employers could use either the previous or new current rates, as they choose. Employers could therefore make or require supplementary payments if they so wished, but were under no obligation to do either.

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.

Details of the new rates are available at:- http://www.hmrc.gov.uk/cars/advisory_fuel_current.htm