HMRC have announced new rates for journeys on or after 1 July 2006. These rates apply to company car drivers who are reimbursed for business miles driven. The rates can also be used by company car drivers who claim all their fuel costs and then reimburse their employer for their private mileage.

Engine Size Petrol Diesel LPG

1400cc or less - 11p (10p) 10p (9p) 7p (7p)
1401cc to 2000cc - 13p (12p) 10p (9p) 8p (8p)
Over 2000cc - 18p (16p) 14p (13p) 11p (10p)

Employers can increase the rates paid to the above amounts without having to agree them with HMRC.

There has been no increase to the 40p a mile rate which applies to the first 10,000 business miles driven by an employee in their own car. The employee car rate drops to 25p per mile after 10,000 miles.

Internet link: HMRC website