HMRC releases new advisory fuel rates for company cars

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

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Personnel Today Smart Buyer: all Company Cars content

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


Petrol price
(per mile)

Diesel price
(per mile)

LPG price
(per mile)

1400cc or less




1401cc to 2000cc




More than 2000cc




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