Businesses that provide staff with company cars for work purposes will have to reimburse employees with higher fuel costs.

HMRC has increased the rate for petrol cars by between 9% and 15%, depending on the engine size, while diesel drivers will be able to claim back between 18% and 21% more.

The move reflects the rising price of fuel, with petrol costs rising by 12% and diesel 20% over the past five months.

HMRC reviews the rates for fuel every six months but can intervene outside of those times if costs rise by more than 5%.