Latest fuel advisory rates published

HM Revenue & Customs (HMRC) has updated its advisory fuel rates, applying to all journeys on or after 1 September 2014.

HMRC-approved advisory fuel rates apply where employers reimburse employees for business travel in their company cars, and where employees reimburse the cost of fuel used for private travel in a company car. There is no fuel benefit charge if the advisory rates are used.

The figures quoted will also be accepted by HMRC for VAT purposes, though employers are reminded to retain receipts. The new rates per mile are:

Engine size             Petrol   Diesel   LPG

1400cc or less                        14p       9p

1401cc to 2000cc       16p                  11p

1600cc or less                                    11p

1601cc to 2000cc                   13p

Over 2000cc               24p      17p      16p

Hybrid cars are treated as either petrol or diesel cars for this purpose.

The rates are reviewed four times a year and any changes take effect at the beginning of each calendar quarter, on 1 March, 1 June, 1 September and 1 December.

They are published on HMRC’s website shortly before the date of change. For one month from the date of change, employers are able to use either the previous or new rates.

Link: Additional HMRC information 

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