HMRC have issued advisory fuel
rates for company car drivers. These take effect
for all journeys undertaken from 1 August so
employers should advise affected employees
and update any expense forms as soon as possible.
| Engine size |
Petrol |
Diesel |
LPG |
| 1400cc or less |
10p (9p) |
10p (9p) |
6p (6p) |
| 1401cc – 2000cc |
13p (11p) |
10p (9p) |
8p (7p) |
| Over 2000cc |
18p (16p) |
13p (12p) |
10p (10p) |
Other points to be aware of about the advisory
fuel rates:
- employers do not need a dispensation
to use these rates
- employees driving company
cars are not entitled to use them to claim
a deduction if employers reimburse them at
lower rates. Such claims should continue
to be based on actual costs incurred.
- the
advisory rates are not binding where an employer
can demonstrate that the cost of business
travel in company cars is higher than the
guideline mileage rates.
If you would like to discuss your company
car policy, please contact us.
Internet Link:
HMRC advisory fuel rates |
