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Advisory fuel rates update

1st December 2017

As of 1 December 2017, advisory fuel rates have been updated for employees' usage of company cars.

The following rates are now in place for petrol and LPG-fuelled cars provided by your employer, while the previous rates can be used until 1 January 2018.

Engine size Petrol - amount per mile LPG - amount per mile
1400cc or less 11p 7p
1401cc to 2000cc 14p 9p
Over 2000cc 21p 14p

The following rates also apply for diesel cars:

Engine size Diesel - amount per mile
1600cc or less 9p
1601cc to 2000cc 11p
Over 2000cc 13p

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

These rates will apply when an employer reimburses employees for business travel in their company car and when employees are required to repay the cost of fuel used for private travel.

Contact us to discuss how this affects your business.

Click here for ICAEW website  Click here for SAGE website