DMS Posts

Advisory fuel rates for company cars

New company car advisory fuel rates have been published which took effect from 1 September 2017. The guidance states: ‘You can use the previous rates for up to one month from the date the new rates apply’. The rates only apply to employees using a company car.

The advisory fuel rates for journeys undertaken on or after 1 September 2017 are:

Engine size                                        Petrol
1400cc or less                                    11p
1401cc – 2000cc                                 13p
Over 2000cc                                       21p
Engine size                                        LPG
1400cc or less                                     7p
1401cc – 2000cc                                  8p
Over 2000cc                                      13p

Engine size                                       Diesel
1600cc or less                                     9p
1601cc – 2000cc                                11p
Over 2000cc                                      12p
The guidance states that the rates only apply when you either:

reimburse employees for business travel in their company cars
require employees to repay the cost of fuel used for private travel
You must not use these rates in any other circumstances.

HMRC Advisory Fuel Rates