Advisory fuel rates for company cars

Many employers and employees make use of the advisory fuel rates published by HM Revenue & Customs. The rates apply where the employer:

  • reimburses employees for business travel in company cars where the employer does not provide fuel, or,
  • requires employees to reimburse the cost of employer provided fuel used for private travel, so potentially avoiding a private fuel benefit charge.

The advisory fuel rates are also acceptable for VAT purposes providing VAT receipts for fuel purchases are retained.

The rates have changed with effect from 1 September 2013. The new rates are on the link below. Please note that HMRC no longer gives a months notice in this regard.

Currently HM Revenue & Customs reviews the rates at least twice a year. Please click here for more information.


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