HMRC releases new advisory fuel rates for company cars

Personnel Today’s Smart Buyer provides expert guidance on company car schemes…

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HM Revenue & Customs (HMRC) has released new advisory fuel rates for employers with company car schemes.

Most of the rates have risen slightly or remain unchanged but, for larger engines, the advised costs of diesel and LPG have fallen. The new rates will apply to all journeys made on or after 1 December and, for one month, employers can choose to use either the previous or current levels.

Employers will be able to use these new rates for VAT purposes but receipts also need to be kept, in line with current legislation. These levels are reviewed twice per year and HMRC advises employers to make themselves aware of any changes.

For more information on implementing a company car scheme, read our Smart Buyer guide.

New advisory fuel rates
Engine size	Petrol price (per mile)	Diesel price (per mile)	LPG price (per mile)
1400cc or less	13p	12p	9p
1401cc to 2000cc	15p	12p	10p
More than 2000cc	219	Sign up to our weekly round-up of HR news and guidance Receive the Personnel Today Direct e-newsletter every Wednesday Email(Required) OptOut From time to time, we will send you emails about selected products, events and services from Personnel Today - but you can choose to opt-out at any time. If you do not wish to receive these emails, please tick this box. Phone This field is for validation purposes and should be left unchanged. Δ 15p	15p