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Advisory Fuel Rates

Advisory fuel rates for company cars

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

Engine size    Petrol
1400cc or less    11p
1401cc – 2000cc    14p
Over 2000cc    22p
Engine size    LPG
1400cc or less    7p
1401cc – 2000cc    8p
Over 2000cc    13p
Engine size    Diesel
1600cc or less    9p
1601cc – 2000cc    11p
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 [email protected]/