DMS Posts

Advisory fuel rates for company cars

New company car advisory fuel rates have been published which took effect from 1 December 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 December 2017 are:

Engine size                                    Petrol
1400cc or less                                    11p
1401cc – 2000cc                                 14p
Over 2000cc                                       21p

Engine size                                     LPG
1400cc or less                                      7p
1401cc – 2000cc                                   9p
Over 2000cc                                       14p

Engine size                                    Diesel
1600cc or less                                      9p
1601cc – 2000cc                                 11p
Over 2000cc                                       13p

HMRC 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.