Advisory Fuel Rates

If your business offers employees the use of a company car, you will need to be aware of the new advisory rates introduced this month. Harvey Telford & Bates Accountants can provide guidance on your advisory fuel rates, as well as business support services.

Advisory fuel rates for company cars

New company car advisory fuel rates have been published which take effect from 1 September 2018. 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 September 2018 are: 

Engine size

   Petrol

1400cc or less

   12p

1401cc – 2000cc

   15p

Over 2000cc

   22p

Engine size

   LPG

1400cc or less

   7p

1401cc – 2000cc

   9p

Over 2000cc

   13p

Engine size

   Diesel

1600cc or less

   10p

1601cc – 2000cc

   12p

Over 2000cc

   13p

HMRC guidance states that the rates only apply when you either:

  • reimburse employees for business travel in their company cars or
  • 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 or require any additional business support, please contact our team at our Shrewsbury office today – email hello@htbaccountants.co.uk

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