Advisory fuel rates for company cars

New company car advisory fuel rates have been published which took effect from 1 December 2016. 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 2016 are:

Engine sizePetrol
1400cc or less11p
1401cc - 2000cc14p
Over 2000cc21p
Engine sizeLPG
1400cc or less7p
1401cc - 2000cc9p
Over 2000cc13p
Engine sizeDiesel
1600cc or less9p
1601cc - 2000cc11p
Over 2000cc13p

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.

If you would like to discuss your car policy, please contact us.

More info: GOV.UK AFR