Company car advisory fuel rates
Applicable from 1 December 2013, HMRC has announced the new rates which will apply until further notice. In most categories there is a reduction in the rate payable; 1p per mile for the larger engined diesel cars or smaller petrol or LPG vehicles, and 2p per mile for the larger engined petrol cars.
What are advisory fuel rates?
HMRC first introduced the advisory fuel rates in January 2002. These are guidelines relating to the fuel only mileage rates applicable for company cars.
The advisory fuel rates are intended to reflect the actual average fuel costs at the time they are set. They are to be used to assist employers in setting the mileage rates to reimburse employees for business travel in their company cars or where an employee is required to repay the cost of fuel used for private use.
Since 2011, the advisory fuel rates have been reviewed four times a year, with changes taking effect quarterly on 1 March, 1 June, 1 September and 1 December.
The new rates are:
|1400cc or less||14p||9p|
|1401cc to 2000cc||16p||11p|
|1600cc or less||12p|
|1601cc to 2000cc||15p|