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New advisory fuel rates for company cars have been announced by HMRC. They apply to all journeys on or after 1 December until further notice.
As previously advised, the month’s notice previously given has been withdrawn for this change.
HMRC remind employers that they are not obliged to reimburse their employees for business fuel at these rates as long as they do not exceed them overall.
Employers making or collecting payments at the superseded rate because they have not been able to change their systems in time may use their judgment on whether to make or require a second payment in respect of the same period in order to apply the new rate from its effective date.
However, under the normal rules, employees are only able to avoid the car fuel benefit charge if the amount they repay in respect of private fuel at least equals the amounts based on the rates as published.
Petrol hybrid cars are treated as petrol cars for this purpose.
The amounts can be used for VAT purposes, but employers will need to retain receipts.
| Engine size | Petrol |
Diesel |
LPG |
| 1400cc or less | 11p | 11p | 7p |
| 1401cc to 2000cc | 14p | 11p | 8p |
| Over 2000cc | 20p | 14p | 12p |
