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 will change with effect from 1 September 2014.

engine size petrol lpg
14000cc or less 14p 9p
1401cc to 2000cc 16p 11p
Over 2000cc 24p 16p
engine size diesel
16000cc or less 11p
1601cc to 2000cc 13p
Over 2000cc 17p

Please click here for more information from HMRC.

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