The Government has published the latest AFR rates, which companies use to repay drivers for fuel used on business mileage.
The rates, which are effective for the next six months, have gone up by 1p per mile for petrol and diesel cars with an engine size of 1400cc or less, and for diesel cars with an engine size between 1401cc and 2000cc.
However, they remain unchanged for petrol cars with an engine size of 2000cc or less, while the pence per mile rate for diesel powered cars with an engine size over 2000cc has fallen by 1p, from 16p to 15ppm.
This reduction is down to larger diesel powered cars becoming more frugal and achieving better MPG rates than they have in the past.
The new rates apply to all business journeys made on or after December 1.
For one month from the date of change, employers may use either the previous or new current rates, as they choose. Employers may therefore make or require supplementary payments if they so wish, but are under no obligation to do either, said HMRC.
The rates are:
Engine size: Petrol Diesel LPG
1400cc or less: 13p 12p 9p
1401cc to 2000cc: 15p 12p 10p
Over 2000cc: 21p 15p 15p
Petrol hybrid cars are treated as petrol cars for this purpose.
HMRC will also consider changing the rates if fuel prices fluctuate by 5% from the published rates when each review is made and it considers the price change will be sustained.