Motorists who use company cars will be allowed to claim more from their bosses for fuel costs, the government has said.
Drivers of company cars can now reclaim higher amounts of fuel payments from their employers, the government has said.
The rates at which the workers can reclaim for petrol cars have been raised by between nine and 15 per cent by HM Revenue & Customs (HMRC), the UK's tax body, while those for diesel vehicles have been put up by between 18 per cent and 21 per cent. The rates are varied, dependent on the size of the vehicle's engine.
HMRC has made the move in response to the higher costs which drivers face currently. Official estimates suggest that the price of petrol and diesel has increased by between 12 and 20 per cent since the start of the year, an upwards trend driven in part by record wholesale prices for crude oil.
Speaking to the BBC, Harvey Perkins at accountancy firm KPMG said that the tax body's move was good news for Britain's workers.
"For many employees, who over several months have been feeling the true cost of fuel price increases in their own pocket after undertaking business mileage, this announcement will provide long overdue relief," he commented.
"This situation left employees bearing an unfair business mileage cost and their employers in an uncomfortable staff relations position, which has been eased by today's announcement."
The new rates have been brought in with immediate effect.
